Is Fantom [FTM] headed towards a retest of immediate support?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

• Bears still had leverage in the market.
• But bulls could gain more influence if they overcome a crucial short-term sell pressure zone.

So far, Fantom [FTM] has shed over 30% of its value in February. The asset dropped from $0.66 to below half a dollar at the time of writing.

It was trading at $0.4617 at press time but could target this immediate support if BTC fails to reclaim the $21.9K level. 

Read Fantom [FTM] Price Prediction 2023-24

The bulls were blocked at a crucial sell pressure area on the lower timeframe chart

Source: FTM/USDT on TradingView

FTM’s extended price correction found a steady ground at $0.4182, enabling bulls to launch a price recovery. But the recovery attempt was shortlived after it hit a crucial sell pressure zone of $0.4797 – $0.4986 on the lower timeframe chart.

Short traders chose to lock profits at this zone, prompting another price drop at the time of writing. Therefore, FTM could retest the immediate $0.4182 support. Sellers could sell at just below $0.4583 and buy back at $0.4182 to lock gains. 

Is your portfolio green? Check out the FTM Profit Calculator

However, bulls may want to wait for buying opportunities at $0.4182 or $0.3961. It will allow them to target the short-term sell pressure area.

Any long positions targeting half-dollar value should be taken if FTM closes above the sell pressure area. But the obstacle could persist if BTC fails to move beyond $21.9K. 

Notably, the Relative Strength Index (RSI) rose but faced rejection as OBV (On Balance Volume) dipped. The inference from the above trend is that buying pressure was limited, giving bears more influence in the market. 

FTM’s sentiment improved slightly

Source: Santiment

As per Santiment, FTM saw a slight improvement in investors’ outlook as evidenced by a flip of the weighted sentiment to positive from negative. It denotes a mild bullish sentiment which could boost bulls’ move into the market. 

However, the demand for FTM in the derivatives market remained flat, as shown by the neutral Funding Rate.

In addition, FTM’s exchange flow balance was positive at press time, meaning more tokens moved into the exchanges. Such a spike is deemed a short-term sell pressure, which could give bears more leverage in the market after hitting the sell pressure zone on the lower timeframe charts.