Fantom Price Forms Bullish Candle After Securing Funding — When Will FTM Rise Above $1?
Can Fantom Reach a New Yearly High? | Credit: Derek Fenech
Key Takeaways
- The FTM price trades above horizontal support and broke out from a diagonal resistance.
- The Fantom foundation announced a strategic funding round on May 24.
- Can the FTM price increase above $1 and eventually reach a new yearly high?
The FTM price has corrected since March 22 but shows signs that is has started a new upward movement. More specifically, the price action and wave count support the increase.
Nevertheless, FTM has fallen this week and need to maintain its short-term support in order for the bullish structure to remain intact.
Fantom’s Funding Round
On May 23, Fantom announced several new developments in the ecosystem. Firstly, the launch of the new Sonic Chain will also introduce the Sonic Foundation and Lab, which will assist in its growth and oversee treasury funds.
A governance vote was also held for the new $S token, which can be exchanged with FTM on a 1:1 ratio.
However, the biggest takeaway from the announcement was the close of a $10 million strategic funding round. The round was led by Hashed, a well-known cryptocurrency fund in Korea. Other investors that supported the initiative are UOB Ventures, Aave Foundation and Signum Capital.
The funds will support the growth and development of the ecosystem.
Despite the positive announcement, the FTM price fell on May 23 and risks breaking down below $0.80.
FTM Trades Above Long-Term Support
The weekly time frame FTM price chart gives a bullish outlook, since the price has broken out from the $0.60 horizontal resistance area. This is a critical area that has existed since May 2022.
FTM broke out form it in February 2024 and validated it as support (green icon) the next month. The bounce created a long lower wick. The FTM trend is considered bullish as long as the price trades above this area.
While the price action is decisively bullish, indicator readings are mixed. The MACD and RSI are both above their bullish thresholds, at 0 and 50, respectively. However, neither is trending upwards, and the MACD has made a bearish cross.
So, a look at a shorter time frame is needed to determine the future trend.
FTM Price Prediction: Has the Correction Ended?
The daily time frame gives a more decisively bullish outlook. The price action, indicator readings and wave count all align.
Firstly, the price action shows a breakout from a descending resistance trend line. The trend line had existed since the yearly high, so the breakout is a sign the correction is over.
Secondly, the MACD and RSI are both increasing. The MACD is positive, and the RSI is above 50.
Finally, the wave count suggests FTM has started the fifth and final wave of its increase. If the count is accurate, wave five started after the April 13 bottom. The most likely target for the top of the movement is at $1.62. The 1.61 external Fibonacci retracement of wave four (black) creates this target. Also, giving wave five the same length as waves one and three supports this possibility.
FTM on Its Way to a New Yearly High
The FTM price started an upward trend on April 13. Even though the price did not react to the positive news regarding Fantom’s funding round on May 13, the trend remains bullish. If the wave count is accurate, FTM will soon increase toward a new yearly high.
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