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Will Fantom (FTM) surpass this crucial Fibonacci resistance to ignite a flag and rounding bottom breakout, reaching $1?
The Fantom DeFi token is teasing a bullish comeback amid the increasing broader market volatility. Currently, it is trading at $0.6792, with a 24-hour gain of 2.26%.
Nearing the $2 billion market cap, the Fantom price trend targets the psychological mark of $1. Will the bullish trend in Fantom’s price reach this optimistic target amid the delayed October season? Let’s find out.
Fantom’s Flag and Other Bullish Patterns
Fantom price trend in the daily chart reveals a falling channel breakout that is gaining momentum. This also forms a rounding bottom reversal with a neckline near $0.7181.
The FTM price trend recorded a 52-week low of $0.2631 during the falling channel pattern. Since then, the DeFi token’s price has increased by 157.51% over the past two months.
Amid the growing momentum of the recovery rally, Fantom has surpassed the $0.50 psychological mark, leading to increased bullish influence. This fuels a golden crossover between the 50-day and 200-day EMAs.
Furthermore, the 100-day and 200-day EMAs are on the verge of a bullish crossover. The MACD and signal lines, supporting the technical indicators, are also nearing a bullish crossover, increasing the chances of a breakout rally.
Where’s Fantom Headed?
Currently, Fantom is situated between the 38.20% and 50% Fibonacci levels, ranging from $0.61 to $0.71. In the short term, the price trend showcases a bullish flag within the rounding bottom pattern.
The positive cycle within the bullish flag challenges the overhead trend line with three consecutive bullish candles. With multiple variables at play, the entry point for price action traders remains at the breakout of the 50% Fibonacci level.
In the event of a bullish extension, upcoming price targets for Fantom are $0.81 and $0.96, corresponding to the 61.80% and 78.60% Fibonacci levels. Meanwhile, the falling channel breakout suggests a potential target of $1.14 by the end of this month if the broader market recovers.
On the flip side, support levels for Fantom are at $0.61 and $0.49.