Fantom prepares for Rebound
Fantom appears have reached a critical support area that could help prices rebound, if it continues to hold.
The Layer 1 blockchain’s FTM token has endured a steep correction over the past few days after suffering rejection at the $0.87 resistance level. Fantom’s value has dropped by 27% since May 5th, reaching a low of $0.63. The downtrend seems to be ending, which could lead to a bullish impulse.
Fantom began testing the lower trendline for a parallel channel it has identified on its 12-hour chart. The vital support level has prevented further losses since early January, leading to an upswing to the pattern’s upper boundary every time it has been tested. FTM could rebound to $0.80, or even $1 if similar price action occurs.
The optimism of the Tom DeMark (TD), Sequential indicator gives credence to this optimistic outlook. It is preparing to give a buy signal for the 12-hour chart. A red nine candlestick is a sign of a bullish formation. This indicates a one- to four candlestick rebound. Fantom also appears to be creating a bullish divergence with the RSI in the same timeframe.
The odds favor bulls but there is uncertainty in the crypto and global financial markets that could lead to a decline. Many crypto assets have been losing money over the past week due to the uncertain climate. Bitcoin hit a 10-month low earlier today.
Fantom could lose its short-term optimism if it experiences a surge in selling pressure or falls below $0.62. Fantom may see its losses increase to $0.50 if such circumstances arise.