Since its significant drop in early May, Fantom’s value has been consolidating inside a narrow range. The alternative cryptocurrency had not yet broken out of this four-month-old range. In the meantime, prices have fallen below the bottom threshold of the range stated throughout the course of the past ten days.
Additionally, bearishness was seen on the price charts of Bitcoin, and September appears to be setting the stage for additional price drops. A fall in the price of bitcoin will result in losses for the alternative market, which will be met with price drops for Fantom. That would result in FTM experimenting with range lows.
Chart of Fantom for One Day
The price of Fantom fluctuates between $0.42 and $0.2 according to the daily chart. The value of $0.32 was considered to be the region’s middle. On the 24-hour chart, the alternative token’s sessions in August caused the zone to switch positions, moving from support to resistance. Since the beginning of August, FTM has been suffering through downward trends on its shorter periods.
In addition, the token was able to break through the support located at the middle of the range. Because of this, the Relative Strength Index fell lower than the neutral value of 50. These moves confirmed a more negative outlook that had been developing. Additionally, the ADX and –DI of the DMI continued to show upside potential beyond the level of 20. That contributed to further bolstering the downward trend.
Fantom 1Hr Timeframe
The one-hour chart showed that there has been less volatility in the market during the past ten days. As the price made a feeble recovery from the previous record, it approached the level of support at $0.26. After a long time, the bulls became exhausted. Due to the significant drop that occurred the day before, FTM formed a big downward candlestick. The FIB retracement zones were plotted by the analysts. At $0.259 and $0.255, respectively, we found the 61.8% and 50% retracement points.
On the price charts, the two areas in question were located below the prior demand territory. In spite of the fact that sellers were still present, the Relative Strength Index displayed extreme bearishness and swung past the threshold of 30. In addition, there was a significant decrease in the On-balance volume, which highlighted the increased selling pressure that has been occurring over the past several hours.
A Closing Reflection
According to the daily chart, a move toward $0.2 on the FTM could signal a lucrative “buy” opportunity. In the meantime, a pessimistic sentiment prevailed across the higher timeframe. On the one-hour chart, Fantom may have a recovery to the level of $0.25. Such steps would put sellers in a more precarious position than buyers.
The bears have demonstrated once more that they are the dominant force in the market, and the structure of the FTM market did not favor purchasing. Take-profit possibilities on shorts can become available beginning at $0.25 in the 0.236 extension market, which is currently trading at $0.23.