Fantom (FTM) Reaches Highest Ever Daily Close
Fantom (FTM) barely failed to reach a new all-time high and dropped afterwards. It is currently searching for support.
FTM has been moving upwards at an accelerated rate since Dec 30, when it validates the previous descending resistance line as support. The upward movement led to a high of $3.37 on Jan 17. While this was just short of the all-time high of $3.48, the Jan 16 close was the highest in history.
Currently, FTM is trying to hold on above the $3.15 horizontal area. The area previously acted as resistance and is expected to act as support. Therefore, the current daily close is important for the future trend. A close above this level would validate the area as support and likely lead to a new all-time high price.
Cryptocurrency trader @George1Trader tweeted an FTM chart, stating that the token could increase towards a new high above $4. Since the tweet, the token has increased, but just failed to reach a new all-time high.
Future FTM movement
However, the six-hour chart indicates that a short-term downward movement could transpire prior to the continuation of the ongoing increase.
The main reason for this is the bearish divergence that has developed in both the RSI and the MACD (green lines). This often precedes downward movements.
If a decrease occurs, the main support area would be between $2 – $2.26, the 0.5-0.618 Fib retracement support level.
This would be an ideal place for FTM to create a higher low and then resume its upward movement.
There is considerable overlap in the downward movement between Oct and Dec 21 (highlighted). Therefore, it is likely that the decrease was a correction, while the ongoing increase is the beginning of a new long-term upward movement.
As a result, if FTM eventually reaches a new all-time high, the next closest resistance area would be at $4.85. The area is found using the 1.61 external Fib retracement level on the aforementioned decrease.
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