Key Takeaways
After gaining 58% since the November low and reaching $1, the price made an 8% pullback. Resistance has been encountered, but the overall trend remains bullish, which is why there are two scenarios ahead.
Either way, Fantom (FTM) could soon enter the consolidation phase, regardless of whether or not it has one more high ahead.
The daily chart for Fantom (FTM) highlights a significant bullish breakout following the completion of a prolonged corrective structure.
After bottoming near $0.26 on Aug. 5, the price made its first recovery to $0.54 and a higher low of $0.37 on Sept. 6.
FTM initiated an impulsive wave structure, reaching its next high of $0.76 on Oct. 2. It entered consolidation, falling close to the 0.5 Fib level to a low of $0.53 on Nov. 4.
Since then, it has gained around 58%, reaching $1 on Nov. 24. The current rally is part of wave (v), with the price trading near $0.97 as momentum remains strong.
The breakout aligns with the Fibonacci retracement levels, confirming a robust bullish trajectory. The Relative Strength Index (RSI) has entered elevated levels but remains below the overbought zone, suggesting the rally can continue before a larger correction.
However, the sharp price movement indicates the need to monitor for potential exhaustion soon.
FTM could enter another consolidation period before it can continue moving up to conclude its five-wave pattern.
FTM’s ability to sustain above $0.76 will be crucial for maintaining bullish momentum. Breaking above $1.15 would open the path toward extended upside targets, while failure to hold above $0.76 could result in a retracement.
The 1-hour chart shows a strong impulsive structure as it progresses through a bullish five-wave pattern. Following the breakout above the $0.80 resistance level, FTM surged to a high of $1, developing its lower-degree wave (iii).
The price is currently consolidating, suggesting the development of a wave (iv) correction before a potential push toward wave (v) targets.
On the other hand, the current uptrend could immediately continue as the price still hasn’t reached its optimal 1.618 Fib extension point, which would be close to the March high of $1.15.
The Fibonacci levels provide a clear roadmap for potential retracement and further extension. Wave (iv) could see a retracement toward $0.88 (0.786 Fibonacci level) or deeper to $0.83 (0.618 Fibonacci retracement) before resuming its uptrend.
On the upside, the immediate resistance lies at $1.03 (1.272 Fibonacci extension), with further targets at $1.13 (1.618 Fibonacci extension) and $1.15, aligning with the higher degree wave projection.
Support Levels:
Resistance Levels:
FTM’s ability to sustain above $0.88 will confirm the continuation of the uptrend. A decisive breakout above $1.03 would validate wave (v), opening the door for further bullish momentum toward $1.15 and beyond.
Failure to hold the $0.83 support could signal a deeper retracement or an end to the current bullish wave structure.