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FTM prices reverse from the support trendline to jump 12.5%, resulting in a bullish breakout to test the overhead supply zone at $0.30. The FTM price action gives a bullish breakout of the galling channel pattern in the daily chart, with a recent reversal of 12.5%. However, the breakout rally may shortly face opposition at the overhead supply zone at $0.30, close to the 50-day EMA. Will this recovery rally break above the crucial resistance zone of $0.30?
Key Points:
- The FTM price action showcases a falling channel breakout.
- The bullish reversal approaches the next bearish barrier at $0.30.
- The intraday trading volume in Fantom is $233 million.
Source - TradingView
FTM Technical Analysis
The FTM price shows a downtrend in a falling channel pattern after the $0.30 fallout accounting for a drop of 20% within a fortnight. However, the recent reversal from the support trendline fruiting the bullish divergence in RSI results in the bullish breakout. The recent 12.5% recovery over the past four days approaches the $0.30 supply zone close to the 50-day EMA. Moreover, the spike in trading volume supports the breakout rally, but the higher price rejection in the daily chart warns of a trend reversal at $0.30. However, the sideline buyers can expect a breakout entry opportunity if the FTM prices exceed the $0.30 supply zone, with a potential to reach $0.35. Conversely, reversing the $0.30 supply zone will drop the Fantom market price to retest the broken resistance trendline.
Technical Indicators
The RSI slope skyrocketed from the oversold region indicating the traders are interested in FTM's discounted price. A breakout from above the midline will reflect a switch to positive sentiment about the coin. A narrow gap between the MACD and signal line suggests no strong momentum and accentuates a sideways rally. Hence, the technical indicators reflect high demand pressure at the bottom level, but the market sentiment remains uncertain. Resistance Levels - $0.30 and $0.35 Support Levels - $0.26 and $0.24