This is why Fantom’s [FTM] 28% rally will be short-lived

ambcrypto.com:

The current state of the cryptocurrency market is all smiles and sunshine with tokens rising with a newfound hope of bullishness every single day. And this bullish influence of the broader market has rubbed off on Fantom as the altcoin today rose by 8.5%, which, although it might sound like a lot, doesn’t even come close to a lot.

The asset’s general fluctuation consists of rises and falls in the average range of 6% to 12%, making today’s rise just another Monday movement. However, going forward is where the possibility of a trend change lies.

Unlike other altcoins in the market, Fantom might not witness a sustained rally over the coming days. The most significant indicator of the same comes from the price indicators, which have been fairly accurate in the ups and downs of the past as well.

Firstly before FTM could even close a green candle today, the Parabolic SAR shifted its position to indicate an active downtrend for the last three days.

While this isn’t an absolute guarantee of a downfall, SAR’s proximity to the candlesticks can certainly trigger a few red candles down the line.

Fantom price action | Source: TradingView – AMBCrypto

Secondly, the bullishness particular to the asset is waning. Given FTM is in an active squeeze and the green bars on the squeeze momentum indicator are disappearing, the price will decline when the squeeze release hits.

And on top of that, Fantom shares a very high correlation with Bitcoin, and although the king coin is doing well at the moment, its volatility would add to FTM’s price swings.

Fantom correlation with Bitcoin | Source: Intotheblock – AMBCrypto

But as it appears to be, the network does have some support from investors and the market alike, which would be worth considering given the