Fantom’s 5-week successful streak is in peril — Will FTM worth lose 35%?

The worth of Fantom (FTM) dangers pulling again in February as a consequence of a rising divergence between its worth and momentum in current weeks.

FTM worth rallies 230% after Cronje’s 2023 roadmap

FTM’s worth has grown by 230% previously 5 weeks, buying and selling at $0.61 on Feb. 5. The rally got here as part of a broader crypto market restoration however outperformed most top-ranking crypto belongings as a result of hype created by Andre Cronje.

Cronje is the co-founder and architect of Fantom’s layer-1 blockchain. On Dec. 26, 2022, the developer launched a letter discussing the targets and priorities for the Fantom ecosystem in 2023, together with his intention to permit decentralized app builders to earn 15% of the community’s income.

The FTM worth has seen 5 weeks of good points in a row since Cronje’s letter to the Fantom Basis staff.

FTM/USD weekly worth chart. Supply: TradingView

The FTM/USD pair appears to be like prepared to shut the week ending Feb. 5 with no less than a 25% revenue, helped by Cronje’s newest Twitter thread that provides 13 explanation why Fantom shall be the most effective layer-1 blockchains in 2023. 

Fantom worth technicals trace at correction forward

However, FTM’s ongoing rally dangers exhaustion as a consequence of a rising bearish divergence between its rising worth and falling momentum.

On the each day chart, FTM/USD has shaped increased highs since mid-January, whereas its relative power index (RSI) has made decrease highs. As a rule of technical evaluation, such a discrepancy signifies that the upside momentum is slowing.

FTM/USD each day worth chart that includes bearish divergence. Supply: TradingView

As well as, the RSI stays above 70, suggesting FTM is “overbought.“ It additionally hints about short-term bullish exhaustion and doable sideways or downward worth motion within the coming days.

Associated: Crypto fast hits: eight easy steps to a number of weekly winners

FTM dangers crashing towards $0.42, or 35% from present worth ranges, given the extent’s current historical past as resistance. Furthermore, a detailed beneath $0.42 would convey FTM’s 200-day exponential shifting common (200-day EMA; the blue wave) at $0.38 into view as the subsequent draw back goal.

FTM/USD each day worth chart. Supply: TradingView

Total, Fantom maintains its bullish bias so long as it stays above its 200-day EMA and the 50-day EMA (the pink wave). 

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a call.

You May Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *