Fantom (FTM) Price Breaks Support, Warning of Potential 33% Decline

Key Takeaways

• Fantom shows signs of entering a corrective ABC phase.
• A fall below $0.60 confirms a downward trend shift.
• The potential price target for correction is $0.47 based on Fibonacci.

Fantom (FTM) has seen significant price volatility throughout 2024. Its rally ended in March and was followed by sharp corrections until August.

As it enters a potential new bull phase, understanding the wave patterns and upcoming corrections will be key to anticipating its next move.

Fantom Price Analysis

Fantom initiated a new bullish cycle after hitting a low of $0.17 on Oct. 18, 2023, and rallied to a yearly high of $1.20 by March 22.

This substantial rise was followed by a sharp 55% correction, bringing the price down to $0.56 by April 13.

A subsequent 70% recovery brought the price back to $0.97 on May 21, but another downtrend pushed it down to $0.26 by Aug. 5.

These fluctuations suggest that Fantom experienced a three-wave corrective phase following an initial five-wave rise.

A new bullish cycle was confirmed when FTM broke out of a descending triangle and began its upward movement.

On Oct. 15, the price reached a high of $0.80, concluding its five-wave pattern since Aug. 5. As it came slightly above the significant horizontal level, it started showing signs of weakness since the start of October.

Still, today, it finally made a breakout below the ascending support, signaling a potential trend shift. 

If this five-wave pattern was the first advancement in a new bullish phase, FTM is likely headed to its first bull phase correction before it can continue upward. 

FTM Price Prediction

The hourly chart shows that the initial uptrend from Aug. 5 to 25 broke through descending resistance, followed by a higher low formation during the retracement. These movements likely represent two sub-waves within a five-wave impulse, signaling the beginning of a new bullish phase.

The rally from Sept. 6 appears to have developed wave three, with the consolidation in the ascending channel since 21 forming wave four. The rally reached a low of $0.58 on Oct. 3.

A new and likely final uptrend began from this point, rising 32% to today’s high, followed by a near 8% decline. Based on the wave structure, the rise from Oct. 3 may represent a lower-degree five-wave impulse, suggesting the higher-degree one may now be complete.

Monday’s high was a double top to the Oct. 15 high, followed by a nearly 14% decline. FTM may begin an ABC correction to the downside, typical in bull phases.

The optimal retracement target is at the 0.618 Fibonacci level, which suggests a price target of $0.47.

To confirm this outlook, FTM must fall below $0.60, the first lower low since Oct. 3, followed by a lower high of $0.71 as a B wave.

If this plays out, the likelihood of this scenario will be very high.