beincrypto.com
Fantom (FTM) price has decreased during the past three days. It is possible that a short-term correction has begun.
FTM is the native token of the Fantom network, a smart contract platform designed to compete with Ethereum. Since the beginning of 2022, the price of Fantom had decreased under a long-term descending resistance line, according to the weekly time frame.
In early Nov., it broke down from the long-term $0.20 horizontal support area. However, it quickly reclaimed the area, proving that the breakdown was not legitimate (red circle). The reclaim was combined with bullish divergence in the RSI. The indicator has now moved above 50, indicating a bullish trend.
The Fantom price then broke out from the descending resistance line, validating it as well as the resistance line as support. Since then, the price has risen by a gigantic 270%, leading to a high of $0.61. Because there is no overhead resistance, the FTM token price could rise toward the $1.20 resistance level. The RSI readings also support this.
On the other hand, if the upward movement loses momentum, the future price may fall back to the $0.40 horizontal area, which is now expected to provide support.
Fantom Price Chart Shows Extended Wave
The technical analysis from the daily time frame shows that the FTM price is likely in wave four of a five-wave upward movement (black). The sub-wave count is given in red. Wave three extended considerably and reached the 4.61 extension of wave one. This is often the final Fib extension level. Therefore, it is likely that wave four has begun.
If so, the 0.382 Fib retracement support level at $0.46 (white) would be the first level that could provide support.
On the other hand, an increase above the wave three high of $0.66 would invalidate this bearish forecast. In that case, the digital asset could increase further toward $1.20.
To conclude, the most likely Fantom price outlook for the next few months is a decrease to $0.46 followed by a sharp upward movement toward $1.20. An increase above $0.66 would mean that the correction is complete and the increase toward $1.20 has begun.
For BeInCrypto’s latest crypto market analysis, click here.