Phantom’s Can [FTM] The recent spike close to 19% improves the long-term outlook.


Unlike fellow altcoins, retail traders have shown interest in the Fantom (FTM) market over the past 24 hours. Thus, buyers raised pressure and helped the FTM get out of the 10-day low volatility phase near the control point (POC, red).

The recent uptrend has chalked up a four-hour upward wedge. If there is a closing price below the pattern, the alt is likely to decline in the short term. At press time, FTM was trading at $0.4272, up 18.63% in the last 24 hours.

FTM 4 hour chart

Source: TradingView, FTM/USDT

A series of low highs and high lows displayed a symmetrical triangle on the FTM’s 4-hour chart. The pattern was initially considered bearish given the previous decline and market dynamics. However, ongoing progress with respect to ‘fUST’, the underlying stablecoin of the network, has negated the short-term bearish trend.

After showing a non-linear 24-hour advance, the FTM broke the POC and finally tested the $0.42 level. Buyers moved noticeably stronger, as evidenced by the recent bullish candlestick on the FTM chart, as daily volume increased by more than 98%.

A potential rejection of higher prices can now lead to unwanted short-term losses. The closing price below the wedge should pave the way towards the $0.37-$0.34 range before buyers regain strength. With the POC serving as an important value area, the bulls will target a gradual upward movement going forward. If sellers decline, the goal is to immediately recover from the $0.42 level and hit the 38.2% Fibonacci level.

rationale

Capture 45 scaled

Source: TradingView, FTM/USDT

The RSI recently returned above 63. Thus, it shows signs that the market is strengthening. However, as the index approaches overbought territory, it is starting to show signs of flattening.

CMF also declined slightly after reaching overbought territory. Continued corrections could delay potential bullish recovery efforts.

conclusion

Given the over-reading of the RSI and CMF, along with the formation of a rising wedge, the FTM may retreat in the short term. However, with the recent surge in purchases, we will aim to maintain ground in future sessions and drive a relatively quick recovery.

FTM also shares 96% of the 30-day correlation with King Coin. To make a profitable move, you need to keep a close eye on Bitcoin’s movements.

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