Fantom (FTM) had surged to the $1 mark in March, with hopes high for a further rise to $2. However, the market crash intervened, causing prices to plummet, and Fantom experienced a nearly 50% decrease in value. Nevertheless, there remains optimism for the coin's future, with a crypto analyst anticipating a resurgence of bullish momentum under specific conditions.
Fantom is currently in search of support
A crypto analyst known as MyCryptoParadise recently shared insights on TradingView regarding the current state of Fantom's price and the potential for recovery. With the altcoin dropping to $0.56, it has been actively seeking a support level, crucial for initiating a bounce-back. The analyst emphasized that the altcoin is nearing this critical support point.
Presently, the support stands at $0.5679, a level pivotal for confirming a bullish breakout, especially following a recent rejection at the $0.79 resistance.
MyCryptoParadise underscores the significance of maintaining this support as Fantom seeks to regain momentum.
If Fantom manages to establish support and rebounds from this level, there's potential for the formation of a double bottom pattern. The neckline of this pattern, situated around the $0.798 mark, would then act as resistance. The analyst stresses the importance of securing support in this scenario.
In the event of a breakout, the analyst anticipates a substantial move of at least 100% from the current position. The initial milestone would be surpassing the $1 mark, with further upward potential to reach $1.2, contingent upon the confirmation of the prevailing trend.
Further downward movement could be in store for FTM
Conversely, the crypto analyst also envisions a scenario where Fantom's price could further deteriorate. If the altcoin fails to secure support above $0.56 and instead breaks below this level, the downward trend could persist.
In such a scenario, the analyst anticipates a bearish continuation, leading the price to drop below $0.5 eventually. The next support level for Fantom's price is identified by the analyst as being around $0.449, located within the next Bullish Order Block (OB) area.
The analyst underscores the importance of Fantom reclaiming support at $0.568 to sustain its bullish momentum. Failure to bounce back even after reaching the Bullish OB area would signal a bullish invalidation, indicating a continuation of the bearish trend.
May 2024, Cryptoniteuae