Key Takeaways
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.
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.
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.
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.
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.
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.
Support Levels:
Resistance Levels:
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.