Key Takeaways
The Fantom (FTM) price has experienced significant fluctuations in 2023, characterized by sharp rallies and subsequent corrections.
After initiating a bullish cycle in October, the price surged and retraced multiple times, forming key patterns that suggest consolidation and potential for further growth or a corrective phase.
Fantom began a new bullish cycle after hitting a low of $0.17 on Oct.18, 2023, rallying to a yearly high of $1.20 by March 22.
This significant rise was followed by a sharp 55% correction, bringing the price down to $0.56 by April 13.
A 70% recovery took the price back up to $0.97 on May 21, but another downtrend pushed it down to $0.26 by Aug.5.
These price fluctuations suggest that Fantom underwent a three-wave corrective phase after an initial five-wave rise. The start of a new bullish cycle was confirmed when FTM broke out of a descending triangle and began its upward movement.
Today, the price reached a high of $0.80, marking a 22% increase since Monday as momentum picked up the pace.
Following the sharp rise from Sept. 6, during which the price surged by over 100%, an ascending channel formed. This could indicate a consolidation phase before further upward movement.
But how much potential is there for further gains as this could be a final high in this upward advancement?
The hourly chart reveals that the initial uptrend from Aug. 5 to 25 broke above the descending resistance, followed by a higher low formation during the subsequent retracement.
These movements likely represent two sub-waves of the five-wave impulse that signals the start of a new bull phase.
The pattern was confirmed, as the rally starting from Sept. 6 developed wave three, and the proceeding consolidation within the ascending channel since Sept. 21 made a wave four to a low of $0.58 on Oct. 3.
From there, a new and most likely final uptrend began, increasing by 32% to today’s high, after which we saw a nearly 8% downturn.
Judging by the wave structure, the rise from Oct. 3 could have developed a lower-degree five-wave impulse, hinting that the higher-degree one is concluded.
If this is true now, FTM should develop its ABC correction to the downside, making it the first one in the bull phase. At its optimal point, these corrections come to a 0.618 Fibonacci retracement, so our target is $0.46.
Overall, the price is still in an uptrend, so to confirm this outlook, we need to see FTM fall below $0.70, which would mean it broke its ascending structure.