Is the demand across Fantom’s short-term market enough
Disclaimer: The findings of this analysis are the sole opinions of the writer and should not be considered investment advice
The market structure has been bullish in the short term for Fantom. The price formed an ascending channel, but the $2-area is likely to pose some resistance to further gains.
Moreover, there is a chance that Bitcoin could see a pullback to $42,000 in the hours to come or the next couple of days. This could see a pullback for Fantom as well.
Source: FTM/USDT on TradingView
The ascending channel (orange) has been one that the price has been trading within for a little over a week. The $1.7-area (cyan box) had been a key area over the past couple of weeks. This was because the bears flipped this area to a supply zone. Only over the past week have the bulls been able to establish it as a demand zone.
When the price rose above $1.7 and retested the $1.54-support level, it was the first indication that the short-term market structure had flipped to bullish. The previous lower high at $1.65 was breached. Similarly, after bouncing from the $1.35 support (lower low), the price found support at $1.54 to register a higher low.
Hence, the short-term bias was considered to have flipped to bullish.
In the next couple of days, FTM bulls have to ensure that the price doesn’t drop below $1.8 and the channel lows. Going forward, the $2.05-$2.1 area has to be broken for FTM’s next leg upward.
Source: FTM/USDT on TradingView
The RSI stood around the 50.9-mark, but has been above the zero line over the past few days. This indicated that while momentum has been bullish thus far, things could change if the RSI is unable to rise convincingly above neutral 50.
The MACD also showed that recent bullish momentum has been weakening when
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