Fantom (FTM) price has cleared a key horizontal resistance area. The next key resistance is 110% away from the current price. So where will FTM go next?
FTM price is nearing its annual high and showing bullish signs on multiple timeframes. Could the uptrend accelerate soon, or could the price drop?
Phantom Price Clears Long-Term Resistance
In January 2022, the FTM price hit an all-time high before breaking below the downside resistance line. This caused a breakdown from the $0.20 support level and in November 2022 he hit a low of $0.16. However, this decline is only a temporary deviation as Fantom’s price has since increased.
Upward movement usually follows such failures and deviations. This is because the seller was unable to lower the price. Rather, the $0.20 support area has been recaptured and the move up continues.
The Relative Strength Index (RSI), which showed a bullish divergence (green line) before the rise, is now above 50, indicating a bullish trend. RSI is a momentum indicator used to determine overbought or oversold conditions. The uptrend and readings above 50 suggest the bulls still have momentum.
The FTM price is currently trading above the horizontal support area at $0.38. The next significant resistance is found at an average price of $1.15, 112% from his current FTM token price.
Technical analysis on both daily timeframes shows a bullish FTM price forecast due to price action and Elliott wave theory wavenumbers. Elliott Wave Theory is a tool used by technical analysts. Look for repeated long-term price patterns and investor sentiment to determine trend direction.
The price seems to be in the fifth and final wave of upward movement (black). Short-term sub-wavenumbers are shown in white. If correct, the price is on sub-wave 3 of the last wave. This is usually the part where the growth accelerates sharply.
The two areas with the highest potential for future highs are $0.80 and $1.10. The former is identified by projecting the lengths of waves 1 and 3 onto the bottom of wave 4 (green circle). The latter is detected by doing the same with 1.61 Fib length (black).
Fibonacci retracement levels are based on the theory that after a large move in one direction, the price either returns to the previous price level, or halfway back, before returning to its original direction. It can also be used to determine the apex of future upward movement.
Given that the $1.10 target aligns with the aforementioned long-term resistance area and fits the number of subwaves better, it is likely to serve as the top.
Despite this bullish outlook, if the FTM price falls below two sub-wave lows of $0.39 (red line), this bullish forecast will be invalidated and a drop towards $0.20 is possible. I have.
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In line with Trust Project guidelines, this pricing analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to produce accurate and unbiased reports, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions.