Technical Analysis: Fantom (FTM) Price Prediction
Trading Analysis

Technical Analysis: Fantom (FTM) Price Prediction

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1 year ago

Fantom (FTM) had some amazing runs recently. Is there still some gas left in the tank for a leg up in the upcoming months? Read more to find out!

Technical Analysis: Fantom (FTM) Price Prediction

Mục lục

Fantom (FTM) Fantom (FTM) is a highly scalable and fast layer-1 solution that supports DeFi, DApps, and enterprise applications.
There are currently 40+ projects that have deployed their dApps on the Fantom blockchain. Each network/project built on it is independent. 
In this article, we will focus on the project’s native token, FTM. If you want to know more about the project, please check our deep dive into Fantom The analysis done in this article is solely done by the writer. Therefore, it is advised to do your own research before making any trading decision and use this content for educational purposes. 

Let's shift our focus directly to the charts to have a better understanding of the current standing of FTM and its future outlook!

FTM/USDT on a 3D Chart

When it comes down to analyzing charts, the best way to do it is to move from higher time frames to the lower ones. It gives a broader picture of the token’s performance.

In this 3D chart of Fantom, Fibonacci levels are visible, measured from the low in March 2020 to the top in February 2021. What you see is a massive uptrend, which started ever since the capitulation drop in March 2020. Since then, FTM has been making higher highs and higher lows.

What you also see is that the volume spikes are mostly coming from buyers, which suggests that FTM has been accumulated heavily at certain levels. In July this year, the token came all the way back down to the demand zone that ranges between 14 to 18 cents.

Afterward, the price did a 10x spike from that low and topped out at $1.94. Recently, FTM broke above the former all-time-high again after successfully retesting it. Although a bearish divergence formed on the RSI a few days ago, Fantom made another all-time high recently, invalidating the bearish divergence.

It seems like the FTM token is ready to break above the resistance level. Although it is difficult to search for targets when a coin is in price discovery mode, you can use Fibonacci levels to look for more information.

FTM/USDT on a 1D Chart

Here you see a zoomed-in version of this year’s chart. The FTM token made a new all time high in May and retraced in the months after, back to the demand zone. Volume and interest were low there, but when it made its move to get closer to the previous ATH, volume kicked in massively. A massive buying volume pushed the token to another ATH. 

Afterward, FTM dropped again, but retested the former high and bounced back, only to make a new high in early October. Notice how it happened again shortly after the previous ATH was successfully retested?

What you see now is that FTM is retesting its previous high. Bulls wouldn’t want this zone to be rejected, otherwise, it would create a Swing Failure Pattern (SFP). It is a scenario where the price makes an ATH but fails to go further. It isn’t as bullish as it seems and you may see the price going down again.

There is also no massive volume this time, which is a bit concerning for the bulls.

So, let’s zoom into the chart a bit more.

FTM/USDT on a 4H Chart

On the 4H chart, you can see that FTM took out the 4 October low (SFP), and went up rapidly. It made a new high on October 8. Soon after, a rising wedge was formed and the price retested the former ATH from September.


Yesterday, October 19, FTM again made a new ATH, but as mentioned before, the bulls have to be careful here. The price must find good support to keep moving forward. 

The exponential moving averages (EMA) are still in a solid and strong uptrend and may end up forming a support for the price too.

However, if the bulls aren’t strong enough right now, there are two demand zones drawn that would provide support before the next leg up.

Summary

  • Fantom (FTM) is a highly scalable and fast layer-1 solution that supports DeFi, DApps, and enterprise applications.
  • The 3D chart shows a clear uptrend, ever since the drop in March 2020. The price is making higher highs and higher lows. It seems like it is on the verge of a breakout right now.
  • The 1D chart looks OK for the bulls, but you don’t want to see an SFP here right now. That would probably delay the next leg up.
  • The 4H chart looks good. The price is above an important supply zone and close to the previous ATH. If it can sustain above the supply zone, new highs should be on the table.
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