Can Fantom’s [FTM] recent near 19% spike improve its long-term prospects
Contrary to its peer altcoins, retail traders have shown interest in Fantom’s (FTM) market over the past 24 hours. Thus, the buyers elevated their pressure and helped FTM escape from its ten-day low volatility phase near the Point of Control (POC, red).
The recent upswing chalked out a rising wedge on the four-hour timeframe. Any close below the pattern would expose the alt to a near-term downside. At press time, FTM traded at $0.4272, up by a whopping 18.63% in the last 24 hours.
FTM 4-hour Chart
A series of lower highs and higher lows marked a symmetrical triangle on FTM’s four-hour chart. The pattern was initially considered bearish, given the previous drawdown and the market dynamics. But the ongoing progress in relation to ‘fUST’, the native stablecoin of its network, invalidated the short-term bearish tendencies.
After bagging in non-linear 24-hour gains, FTM finally tested the $0.42-level after jumping above its POC. With a jump of over 98% in the daily trading volumes, buyers made a visibly robust move, as evidenced by the recent bullish engulfing candlestick on FTM’s chart.
Any potential rejection of higher prices now could spiral into undesired short-term losses. A close below the wedge would pave a path to the $0.37-$0.34 range before the buyers recoup their forces. With the POC serving as a vital area of value, the bulls would aim for a gradual uptrend in the coming times. Should the sellers dwindle, immediate recovery from the $0.42-level would aim to snap the 38.2% Fibonacci level.
The RSI even managed to claw its way back above 63 recently. Thus, revealing a sign that the market was strengthening. But as the index approached the overbought region, it started to show flattening signs.
Also, the CMF took a slight plunge after hitting its overbought region. A continued correction could delay the potential bullish recovery endeavors.
In view of the overstretched readings on the RSI and CMF alongside the formation of a rising wedge, FTM could see a short-term setback. But with the recent spike in buying volumes, they would aim to hold their grounds and propel a relatively quick recovery in the coming sessions.
Moreover, FTM shares a 96% 30-day correlation with the king coin. A close eye on Bitcoin’s movement would be imperative to make a profitable move.