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Fantom Price Breaks 54-Day Resistance – Wave Count Hints at FTM Rise Above $1

Last Updated May 17, 2024 11:28 AM
Valdrin Tahiri
Last Updated May 17, 2024 11:28 AM

Key Takeaways

  • The Fantom price has increased by 25% over the past three days.
  • Fantom’s wave count, price action and indicator readings are bullish.
  • If the FTM correction finally over, and if so, where will the price go to next?

After bouncing at a long-term support area, the FTM price created a bullish engulfing candlestick on May 15 and broke out from a long-term resistance trend line. This points to the correction being over, especially in alignment with the wave count.

Fantom is one of the biggest gainers in the cryptocurrency market during the past seven days. Its performance is indicative of strong momentum and points to a positive outlook for May and beyond.

FTM Bounces at Long-Term Support

The Fantom price has increased rapidly since October 2023, leading to a yearly high of $1.23 in March 2024. FTM fell afterward, validating the $1.18 area as resistance (red icon). The decrease led to a low of$0.55 in April.

However, FTM  bounced almost immediately after the low, creating a long lower wick (green icon). The wick validated the $0.60 area as support. The area is critical since it had previously provided resistance since the start of 2023. In this sense, the decrease is a regular retest after the breakout.

After consolidating for several weeks, FTM started another upward movement this week.

Fantom Price Movement
FTM/USDT Weekly Chart | Credit: TradingView

Despite the increase, the RSI and MACD give mixed readings. While the RSI is 50, it has been trending downward for several months. Additionally, the MACD just made a bearish cross (red circle).

Because of the discrepancy between the price action and indicator readings, looking at a lower time frame is needed to determine the future trend’s direction.

FTM Price Prediction: Is This the Start of a New Upward Trend?

The daily time frame Fantom price chart gives a more decisively bullish trend. This is because of the wave count, price action and indicator readings.

In the daily time frame, both the RSI and MACD generated bullish divergences (green) before the former moved above 50 and the latter moved above 0. These are all signs pointing to a bullish trend.

The price action shows a breakout above the$0.77 horizontal area and a 54-day descending resistance trend line. If the increase continues, the next resistance will be at $1.03.

FTM Breakout
FTM/USDT Daily Chart | Credit: TradingView

The Fantom wave count also supports the continuing of the increase. The most probable count indicates the price started the fifth and final wave of an upward movement after completing a fourth wave pullback. The positive price action and indicator readings reinforce this wave count.

If the count is accurate, the most likely target for the top of the increase is at $1.62. The same target is given by the 1.61 external Fibonacci retracement of wave four (black) and by giving wave five the same length as waves one and three combined.

Future Wave Count
FTM/USDT Daily Chart | Credit: TradingView

Despite this positive outlook, a daily close below $0.75 will put this bullish perspective at risk. Then, FTM could return to its April lows at $0.65, deepening the correction.

FTM Correction Might Have Ended

The ongoing FTM price increase and breakout implies the 56-day correction has ended. This is conditional on the FTM price not closing above $0.75. If the wave coutn is correct, FTM will increase well above $1 and reach a new yearly high.

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