Fantom (FTM) Rallies After Sonic Announcement — October Set for Bullish Price Action
Key Takeaways
- The Fantom (FTM) price has moved above several resistance levels.
- Sonic announced a collaboration with LayerZero on Oct. 8.
- Can FTM sustain its rally and move toward its yearly high of $1.23?
The Fantom (FTM) price has decreased considerably since its yearly high of $1.23 in March. The downward movement culminated with a low of $0.25 on Aug. 25, a decline of nearly 80%.
However, FTM has regained its footing since breaking out from a diagonal and horizontal resistance level. Let’s analyze the FTM movement and see if the price can recover its losses since March.
Fantom Price Clears Resistance
The weekly time frame chart shows that Fantom has increased since its $0.257 low on Aug. 5.
Shortly afterward, the price broke out from a descending resistance trend line and validated it as support (white icon). Then, it reclaimed the $0.57 horizontal area.
These bullish signs suggest the Fantom price has started a bullish trend reversal.
The reclaim of the $0.57 area is especially important since the area had previously provided resistance since the start of 2023 before turning to support in 2024 (white icon). Its reclaim means the decline below it (black circle) is just a deviation.
The breakout above the trend line is also critical since the trend line has existed since the yearly high of $1.23.
So, the price action from the weekly time frame is decisively bullish.
The weekly time frame Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) support this upward movement. C
oinciding with the breakout, the RSI went above 50 while the MACD crossed 0, both signs of a bullish trend reversal.
If the increase continues, the next resistance will be at $0.86. This is the final resistance area before the yearly high of $1.23.
Wave Count Predicts New Highs
The daily time frame chart aligns with the positive readings from the weekly one for several reasons.
Firstly, the wave count shows that the FTM price is in the fifth and final wave of an upward movement that started on Aug. 5. The bottom on Oct. 1-4 (black circle) likely marked the end of wave four. This was a textbook fourth-wave pullback since the price of FTM bounced at the previous ascending parallel channel.
Secondly, besides breaking out from the channel, the FTM price also reclaimed the minor $0.60 horizontal resistance area and validated it as support.
Finally, the RSI and MACD both bounced at the same time as the FTM price. The RSI bounced at 50, while the MACD is close to making a bullish cross.
All these signs suggest the FTM price increase is not over yet. A likely target for the top of wave five will be at $0.86, at the 0.618 Fibonacci retracement resistance level.
Since the ongoing ascent is part of a five-wave upward movement, it will likely evolve into a longer-term increase. Nevertheless, a correction could occur once FTM reaches the 0.618 Fibonacci retracement resistance level.
The rally could also be bolstered by a positive announcement by Sonic, which will replace Fantom.
The Sonic testnet went live in September and announced its collaboration with LayerZero on Oct. 8.
The Sonic mainnet launch in roughly 2 months has triggered excitement since the Geist launch previously brought over $2 billion in TVL and took the FTM price from $1.35 to $2.45.
FTM Rally Continues
The weekly and daily time frames for FTM are both bullish, predicting that the upward movement will continue.
While the daily wave count gives a preliminary short-term target at $0.85, the weekly chart gives an even more positive FTM price prediction, suggesting that a new yearly high is likely.
Read More: Fantom Price Prediction 2024: FTM Price Analysis
