On March 3rd, the Fantom (FTM) recovery rally turned down from the descending trendline($2). This bearish reversal tumbled the altcoin by 34.7%, bringing it back to $1.3 bottom support. However, the buyers aggressively defend this level, suggesting a dip opportunity for traders.
Key points
- The FTM price shows lower price rejection at $1.3 support zone
- FTM chart shows a negative crossover of the 50 and 100 DMA
- The intraday trading volume in the FTM Network coin is $2 Million, indicating a 38.2% gain
Source-Tradingview
On March 1st, the Fantom (FTM) price gave a bullish breakout from the $1.8 resistance. The relief rally made a high of $2.08, but the buyers couldn’t sustain at this higher level and reverted from the descending trendline.
This reversal triggered a fakeout from the $1.8 level, trapping the aggressive buyers on March 4th. The bear trap accelerated the selling pressure and slumped the coin back to $1.3 support. As the altcoin retests its monthly support level ($1.3), all gains made by traders during last week’s recovery are nullified.
The FTM price trading above the 200 SMA line indicates an overall bearish trend. Moreover, a bearish crossover of the 50 and 100 DMA could attract more sellers in the market.
Descending Trendline Hammers Down The Recovery Efforts
Source-Tradingview
The FTM/USD pair turns green today, registering an 8.68% gain from the $1.3 support. A long-tail hammer candle at this support indicates the buyers are accounting at this dip, suggesting a possible reversal.
The daily-Relative Strength Index(38) shows an evident positive divergence concerning the previous swing low, bolstering a bullish reversal.
Anyhow, the buyers need to overcome the dynamic resistance trendline to initiate a genuine recovery in Fantom.
- Resistance level- $1.45-1.5 and $1.8
- Support levels- $1.3 and $1.15
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/fantom-price-prediction-bullish-rsi-divergence-triggers-recovery-rally-in-ftm-1-8-next/