Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.
- Fantom had a bearish short-term momentum after posting sturdy good points all through January.
- A pullback to $0.5 or deeper was attainable.
Fantom [FTM] noticed a pullback of practically 20% previously three days. It’s attainable that extra losses may observe. Nonetheless, the upper timeframe bias remained strongly bullish. Important ranges of assist close to $0.5 and $0.43 can see a constructive response from the value.
Learn Fantom’s [FTM] Worth Prediction 2023-24
The potential of a restoration and one other transfer upward for Fantom hinges on Bitcoin [BTC]. A bullish BTC would support the efforts of FTM’s bulls. Due to this fact, patrons of FTM may be careful for a bearish transfer from BTC. Any drop under $22.3k may spook patrons and result in a wave of promoting.
The Fibonacci retracement ranges present additional draw back is probably going for FTM
Supply: FTM/USDT on TradingView
Based mostly on the transfer upward from $0.292 to $0.655 in January and early February 2023, a set of Fibonacci retracement ranges (yellow) was drawn. It confirmed the 61.8% and 78.6% ranges to lie at $0.43 and $0.37, respectively.
The four-hour market construction was bearish after the value fell beneath the $0.569 degree of assist and subsequently retested the identical as resistance. To mirror this, the RSI dropped beneath impartial 50 to indicate bearish momentum was dominant. Nonetheless, the OBV held on to the extent of assist marked on the charts.
If the OBV doesn’t see a pointy drop within the coming days regardless of a pullback in FTM costs, it might be an indication that sellers didn’t have the higher hand. As a substitute, it may inform patrons {that a} shopping for alternative was brewing. Within the occasion of a plunging OBV, some warning might be warranted.
In both state of affairs, a retest of the 61.8% or 78.6% retracement ranges earlier than a bullish market construction break on the four-hour chart could be splendid. That is what patrons can look ahead to a flip within the H4 construction to bullish. Following such a break, a transfer again as much as $0.66 and $0.8 might be anticipated. Nonetheless, it is rather possible that on the way in which up, $0.6 would supply stern resistance.
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A drop in Open Curiosity indicators bearish momentum is prevalent
Supply: Coinalyze
The spot CVD has been dropping though the value rallied arduous. This opposed the OBV, which steadily rose alongside the value. The liquidation charts confirmed each lengthy and quick positions have gotten wrecked previously two weeks, particularly in late January.
5 and 6 February noticed $1 million and $900k value of lengthy positions liquidated, respectively. In the meantime, Coinglass confirmed that the FTM funding fee remained constructive, which denoted some bullish sentiment. The $0.43 degree and $0.5 are two ranges that longer-term traders can keep watch over.
