Jul 06, 2022 02:30AM ET
By: AnalysisWatch
Fantom broke and overturned a resistance level.
MTF traders may look for profit-taking opportunities, which could lead to a decline in the MTF price.
The bearish thesis will be invalidated if FTM manages to close the current 4-hour candle above the 9 EMA line.
The Fantom broke and reversed a resistance level and now its price may target $0.29-0.31.
In the last 24 hours, FTM's price has risen 0.89%, according to CoinMarketCap. Thus, its price has risen to around $0.2584 at the time of writing.
Looking at the 4-hour chart for FTM/USDT, the price of FTM is in an upward price channel as its price has been reporting higher lows over the past 2-3 days. So far in this channel, the price of FTM has risen from USD 0.2379 to its current level at the time of writing this article, which is an increase of 2.05% so far.
Given the upward movement, FTM's price could break below the price channel, with potential take-profit orders entering the market.
The price dropped to the support level between the two exponential moving average lines and also fell below the 9-EMA line.
In addition to the price's decline over the past 4–8 hours, the Relative Strength Index also fell to just below the RSI SMA line, which is a notable bear flag.
If the current support level being tested by the FTM price fails to hold, then the FTM price could fall to $0.2524, a price level that is below the 20 EMA line.
However, if FTM manages to recover its price on the 4-hour chart and closes above the 9-EMA line, then the bearish thesis will be invalidated.
Investors and traders should still be cautious as a large volume of selling has entered the market in the past few hours as traders and investors look to take profits.