Altcoins

Fantom: Where to next after another support level bites the dust

Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation

Bitcoin misplaced the $38k-level lower than 48 hours in the past. And, though market members have seen excessive volatility, the general path has been to the draw back.

Fantom has adopted Bitcoin’s footsteps and the worth of Fantom has additionally been on a downtrend over the previous few days. The mid-February bounce was illusory for the bulls, and the transfer to $2.15 was a hunt for liquidity that trapped lengthy positions.

FTM- 1 hour chart

Fantom drops below $1.65, what next?

Supply: FTM/USDT on TradingView

Hindsight is 20/20, however even in mid-February, when the worth did not climb previous $2.1, it was nonetheless not conclusively out of the woods. Whereas it did make the next low at $2, the $2.17 and $2.27-levels have been nonetheless doubtless candidates as ranges the place the bears might step in.

The Fibonacci retracement ranges (yellow) have been plotted primarily based on FTM’s drop from $2.4 to $1.81 earlier in February, and the 27.2% and 61.8% extension ranges had given value targets of $1.65 and $1.45. Per week in the past, the worth discovered help at $1.81 and climbed as excessive as $2.15 earlier than the bears took the driving seat. This noticed the market embark on one other leg south.

The worth registered a minor bounce from $1.65 to $1.75 earlier than dropping as soon as extra beneath $1.65. This confirmed that the $1.65-$1.75 zone may very well be a spot FTM retests earlier than its subsequent leg south.

Rationale

Fantom drops below $1.65, what next?

Supply: FTM/USDT on TradingView

The indications pictured sturdy bearish momentum in latest days. The RSI has been under impartial 50 over the previous few days, indicating a downtrend. On the time of writing, the RSI stood at 28.5, which was oversold territory. Furthermore, the Aroon indicator confirmed {that a} downtrend has been predominant over the previous week, with temporary bounces.

The CDV was additionally on a downtrend – An indication that promoting quantity was a lot larger than shopping for over the previous two weeks.

Conclusion

Bulls haven’t been convincing over the previous couple of days, and demand is but to be seen in power. For FTM, the following ranges of help lie at $1.45 and $1.36, and the $1.3-$1.35 space might see demand step in.

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