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Fantom (FTM) Loses 7% After Reaching Yearly High, Uptrend Faces Pressure

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • FTM completed a five-wave impulsive structure, reaching $1.35.
  • Momentum remains strong, but a corrective pullback is likely.
  • $1.15 support and $1.43 resistance are pivotal for future moves.

Fantom (FTM) has demonstrated strong bullish momentum, breaking out of a prolonged descending wedge and completing an impulsive five-wave structure, with wave (v) peaking at $1.35 on Dec. 3.

This marks a critical trend shift, supported by Fibonacci levels. However, the overbought Relative Strength Index (RSI) suggests a possible short-term correction.

FTM Price Analysis

The daily chart of Fantom (FTM/USD) showcases a decisive breakout from its prolonged descending wedge, marking the end of its corrective wave structure.

After forming a base at $0.27 in August, the price surged, completing an impulsive five-wave structure with wave (v) reaching a high of $1.35 on Dec. 3. 

FTM price analysis
FTMUSD the price got overextended | Credit: Nikola Lazic/TradingView 

This move highlights significant bullish momentum as Fantom broke past critical resistance levels, including $1.14 (1.618 Fibonacci extension), confirming its uptrend.

The RSI is approaching overbought territory, reflecting the strength of the recent rally but hinting at a potential consolidation or corrective phase.

Wave (v) has extended to the 2.272 Fibonacci level, our target from the previous analysis. This signaled the likelihood of a retracement to support levels before further upside potential.

Key Observations

Impulsive Wave Completion: FTM completed a five-wave structure, peaking at $1.43 (2.618 Fibonacci extension).

Overbought RSI: RSI nearing overbought conditions indicates a possible short-term correction.

FTM Price Prediction 

A closer look at the hourly chart shows the completion of a five-wave impulsive structure, with the price nearing the conclusion of wave (v).

Currently trading around $1.26, FTM shows signs of consolidation near the 2.272 Fibonacci extension at $1.35, indicating a possible pause in bullish momentum. Conversely, this consolidation could be an early sign of the coming downturn or a local one leading to another minor high. 

FTM price prediction
FTMUSD symmetrical triangle formed | Credit: Nikola Lazic/TradingView 

The price forms a symmetrical triangle, indicating equal pressure from both sides. This is why a breakout direction will provide further insight into its next move. Either way, the correction is looming. 

The broader bullish structure remains intact, but a retracement to Fibonacci levels would be healthy for continued upward movement in the long term.

Key Levels to Watch

Support Levels:

  • $1.15 (1.618 Fibonacci): Immediate support and a critical level for maintaining short-term bullish momentum.
  • $1.02 (1.272 Fibonacci): Secondary support and likely target if a deeper correction occurs.
  • $0.94 (1.0 Fibonacci): A key support level for preserving the broader bullish trend.

Resistance Levels:

  • $1.35 (2.272 Fibonacci): Current resistance, marking the wave (v) peak.
  • $1.43 (2.618 Fibonacci): Potential target for an extended wave (v).
  • $1.50: Psychological resistance for a bullish continuation.

A corrective pullback to $1.15 or lower could allow Fantom to gather momentum for the next impulsive wave.

Finally, failure to hold above $0.94 would challenge the bullish outlook and signal a potential reversal in the trend.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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