Buyers Tease Breakout From Long-Coming Trendline

The Fantom(FTM) price has witnessed a steady fall of 83% over the past seven weeks, moving along the downward trendline. However, an increase in trading volume and 59% gain from the $0.27 support since last week tease the coin for a potential bull rally. In addition, the consolidation break and the recent accumulation zone give the FTM buyers an edge and an opportunity to kickstart a new rally.

Key points

• The FTM chart shows seven consecutive red candles in the weekly chart.
• The 20 DMA acts as a constant resistance to the FTM coin.
• The intraday trading volume in the Fantom coin is $615 Million, indicating a 95% gain.

Source-Tradingview

The Fantom(FTM) price has witnessed a steady decline while breaking multiple support levels for the past seven weeks. Since then, the price has closely followed the dynamic resistance and tested the 20 DMA a few times. The FTM price is finally taking a break around the $0.27 support with a significant increase in its trading volume, indicating traders’ interest in the coin. 

In addition to the increase in the trading volume, the FTM price has also risen by 59%, where the coin currently trades at $0.43. This portrays a positive sentiment among the traders and enthusiasm among the buyers.

Furthermore, the consolidation phase and trading activity seen in the past week reflect signs of an accumulation zone and a potential breakout using the $0.27 crucial support. A daily candle closing above the descending trendline may drive the price beyond the $1 mark.

However, a bullish movement will struggle at descending trendline and the resistance offered by the 20 DMA.

Technical indicator

The FTM price moving between the Bollinger band indicator’s midline and lower band accentuate strong selling from traders. Moreover, a bullish breakout from the midline would offer the first sign of recovery.

The daily RSI slope showcased a significant rise following a bullish divergence. Furthermore, the indicator slope escaped from the oversold region suggests the aggressive selling has stabilized. 

• Resistance level- $0.41 and $0.64
• Support levels- $0.27 and $0.16

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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