Fantom (FTM) Price May Rise 180% if It Clears This Resistance

Key Takeaways

• Fantom (FTM) trades inside a long-term ascending parallel channel pattern.
• The price reclaimed the $0.615 horizontal area and validated it as support.
• Can FTM go on another run and break out from the long-term channel?

Fantom has increased since August, clearing long- and short-term horizontal resistances. While the price declined after the breakout, it has retested both levels, validating them as support.

Can FTM complete the retest and resume its upward movement, or will it fall below the horizontal support, invalidating the previous breakout? Let’s find out.

Fantom Reclaims Resistance

The weekly time frame chart shows that FTM has increased inside an ascending parallel channel since the start of 2023. Both the resistance and support trend lines have been validated twice.

More recently, the FTM price bounced in August and increased at an accelerated pace. In September, FTM reclaimed the $0.560 horizontal resistance, a critical area relevant for over two years. Last week, it was validated as support.

Despite the reclaim, FTM still trades in the lower portion of the channel after failing to break out from the midline for several weeks (black circle). If it breaks out, the channel’s resistance will be $1.90.

Long-term technical indicators show bullish signs. The Relative Strength Index (RSI) has increased above 50 (white icon), while the Moving Average Convergence/Divergence (MACD) has increased above 0.

Besides the fact that they are trending upward, both levels are considered thresholds for whether the trend is bullish or bearish.

So, the weekly time frame readings suggest that FTM will continue to increase in the long term.

Can FTM Price Break Out?

The daily time frame FTM chart suggests another drop is likely before the upward trend continues. Similar to the weekly time frame, Fantom trades inside an ascending parallel channel in the daily one.

In October, it made several unsuccessful attempts to break out above the resistance trend line (black circle). The resistance coincided with the 0.5 Fibonacci retracement resistance level.

Since then, FTM has returned to the $0.60 horizontal area from which it previously broke out.

The wave count suggests that the Fantom price has completed a five-wave increase starting in August (white). If so, it is currently mired in an A-B-C correction (black). If the count is accurate, FTM will complete wave C near the $0.60 horizontal support area and the channel’s support trend line.

Then, it can begin an upward movement as outlined in the weekly chart, increasing toward its resistance trend line at $1.90.

Drop Before Breakout

While the long-term FTM readings are bullish, the shorter-term chart suggests that the price will decline once more toward $0.60 before resuming its upward movement.

Then, a breakout from the long-term channel’s midline will confirm that the Fantom price has moved upward toward the resistance trend line at $1.90.