Is the Fantom Correction Over? | Credit: Hameem Sarwar
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Key Takeaways
Fantom (FTM) broke out above the long-term resistance of $1.08.
The price has recovered almost all losses from the beginning of the week.
Has FTM completed its correction, and what’s the next target if yes?
The Fantom (FTM) price fell after reaching a yearly high of $1.39 on Dec. 7. At its low of $1 two days later, it had declined by 30%. However, it has rebounded considerably since and nearly recovered all its losses.
The Fantom price is on the brink of a breakout. There is minimal overhead resistance above the yearly high, possibly paving the way for parabolic gains.
Let’s analyze the FTM price action in different time frames and see how likely this is.
The weekly time frame Fantom chart shows that the price broke out from a long-term horizontal resistance area of $1.08 last week, reaching a new yearly high of $1.39.
Afterward, FTM fell but validated the area as support, creating a long lower wick (white icon) and almost moving above the weekly open. The price action resembles a regular retest after a breakout from an important level.
The FTM price has followed an ascending resistance trend line since April 2022, and it has been validated thrice (black icons).
The trend line is currently $1.80, coinciding with the 0.5 Fibonacci retracement resistance level.
Technical indicators are bullish, supporting the price action. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing and above their bullish thresholds.
The RSI just crossed above 70, which had previously accelerated the upward movement.
So, the weekly time frame for FTM readings is bullish. An increase toward at least $1.83 is likely, while FTM does not close below the $1.08 horizontal area.
The wave count suggests that FTM is in wave three of a five-wave upward movement (white). Wave three has extended, and the sub-wave count is in black.
The sub-wave count suggests that FTM completed sub-wave four by bouncing at the resistance trend line of a short-term parallel channel (white icons). The breakout from the channel confirms that the increase is impulsive.
The daily RSI has generated a hidden bullish divergence (green), another sign that the FTM price increase will continue.
If wave three is 2.61 times the length of wave one, the FTM price will reach a high of $1.91 (white). An almost identical target is created by giving sub-wave five the same length as waves one and three combined (black).
Since this area coincides with the long-term Fibonacci resistance and resistance trend line, it will likely act as the local top.
It is important to note that the high will not mark the end of the upward movement but rather a temporary top before the increase eventually continues.
FTM Targets $1.90
The FTM price has decreased from a long-term horizontal resistance area to a short-term ascending parallel channel.
After validating both as support, the upward movement is set to continue. FTM could reach a high near $1.85-$1.90 before creating a local top.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
