By John Smith
After breaking a weekly trend, Fantom (FTM) price is poised for further gains, with a possible upside of 35% in the coming weeks.
Key Points:
- FTM price has broken out of a weekly trend, rising to $0.3311 at the time of writing.
- The cryptocurrency could extend its gains by 35% over the next few weeks, targeting the $0.4449-$0.5262 supply zone.
- A weekly break and close below $0.2390 would invalidate the bullish thesis, bringing the $0.1530 range low into focus.
Technical Analysis
FTM price is trading with a bullish bias on the weekly timeframe, displaying a series of higher highs as the broader market rallies. Using the $0.2390 support level as a jumping-off point, the altcoin could break past the $0.3839 resistance level, driven by increased buying pressure, to test the supply zone, 35% above current levels.
The supply zone extends from $0.5262, indicating a region where FTM anticipates significant selling pressure on the weekly timeframe. Here, Fantom price could encounter resistance or even reverse, as sellers are concentrated within the order block.
For confirmation of the primary uptrend, however, Fantom price must break and close above the midline (mean threshold) of the supply zone, at $0.4859. In a highly bullish scenario, the gains could extend for FTM to reach the $0.7836 resistance level, transforming the supply zone into a bullish breaker.
In highly ambitious scenarios, the gains could surge for Fantom price, surpassing the supplier congestion levels and testing the Fair Value Gap (FVG) ranging from $0.8694 to $1.0605.
This FVG holds significance for FTM, representing a potential magnetic pull as the price seeks to fill an inefficiency or imbalance. Upon reaching this order block, the price could either reverse after filling the orders or continue its northward trajectory. For the latter to occur, Fantom price must break and close above the midline (consequential encroachment) of the FVG at $0.9632 on the weekly timeframe.
Technical indicators support the bullish outlook for Fantom price. The Relative Strength Index (RSI) holds above 50, indicating strong price strength. Additionally, it remains below the 70 level, suggesting room for further gains before overbought concerns arise.
The Awesome Oscillator also aligns with the bullish bias, displaying a sustained series of green histogram bars, reflecting the dominance of bulls in the FTM market.
Bearish Considerations
Conversely, selling pressure from the supply zone and the $0.3839 supplier congestion level could trigger a correction in Fantom prices, pushing it below the weekly trendline. A break and close below $0.2390 on the weekly chart would invalidate the bullish thesis, bringing the $0.1530 range low into focus.
Disclaimer:
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