Fantom prices struggle to recover as FTM sets eyes on $ 0.41
- The Fantom price is expected to follow the overall market lower.
- The weekly chart cautions against a deep retracement.
- Fantom is significantly overbought compared to its peers.
The ghost price appears to be going against the trend that the majority of the cryptocurrency market has seen since the release of the bearish news from China. Fantom lost as much as -17.4% on the initial press release, but quickly rose 12% to bring the current intraday price down to -7.2%.
Fantom price drops despite short-term buying pressure
The Fantom price is approaching a decisive level for both sides of the market. Control remains with sellers, even though the Fantom price is up + 33% from Tuesday’s lows. It remains below the Tenkan-Sen and Kijun-Sen ($ 1.25) – levels that buyers need to break through to take over.
The main target area for sellers is a collection of Ichimoku, Fibonacci, and volume profile levels in the $ 0.38 to $ 0.41 value area. Two Fibonacci extensions (250% and 300%), the 38.2% retracement, 2021 Volume-Point-Of-Control and Senkou Span B are between $ 0.38 and $ 0.41. This combination of technical levels should act as a magnet for the Fantom Prize.
Daily Ichimoku FTM / USDT Chart
A glance at the oscillators should confirm that any drop in the price of the Fantom will likely be sustained. The Optex bands are neutral and the composite index flattens out. The Relative Strength Index looks set to drop below 50 and at an angle that suggests a test of 40 will not hold up as support.
Buyers could quickly invalidate the bearish outlook, however. The current pattern on the chart is a bullish flag, indicating a continuation of the previous trend – which was upward. Fantom price would need a break above the Kijun-Sen and Tenkan-Sen at $ 1.25 to close above the penultimate major high at $ 1.50. If this scenario comes true, Fantom will most certainly continue on its previous upward trajectory.
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