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Fantom [FTM] appreciated practically 7% from the lows of the earlier buying and selling day. The decrease timeframe indicators pointed towards a bullish bias. But, warning was fascinating, particularly for consumers.
Bitcoin [BTC] stood simply beneath a stiff resistance zone at $20.8k, and Fantom additionally confronted sturdy promoting strain at $0.237 previously week. Owing to the presence of a decrease timeframe resistance, a shorting alternative on the dangerous aspect was noticed for FTM. Can the bulls push previous nonetheless?
FTM- 12-Hour Chart
Supply: FTM/USDT on TradingView
The 12-hour chart confirmed a powerful downtrend in progress. This has been the case since mid-August, when FTM broke under its larger low at $0.37 to check $0.285 as help and retest $0.32 as resistance.
One other issue highlighted on the charts was the next timeframe vary (yellow) from $0.21 to $0.42. The mid-point of this vary lies at $0.315 and has served as a help and resistance stage quite a few instances since Could.
The downtrend of the previous few weeks highlighted {that a} decrease timeframe dealer may be bearishly biased.
FTM- 2-Hour Chart
Supply: FTM/USDT on TradingView
On the two-hour chart, we are able to see one more vary established. Highlighted in blue, this one reached from $0.235 to $0.219, with the mid-range at $0.227. On the time of writing, the worth reached towards the vary highs, which had been a stiff zone of resistance over the previous ten days.
A breakout was doable, however context could possibly be key right here. Bitcoin stood beneath the $20.8k resistance, and FTM was in the next timeframe downtrend as effectively. Regardless of the positive aspects of the previous few days, a promoting alternative was across the nook.
The Relative Power Index (RSI) confirmed bullish momentum because it surged to 64, however the On-Steadiness Quantity (OBV) solely moved sideways over the previous week. Therefore, regardless that there was a powerful bounce from the vary lows, neither the OBV nor the worth motion pointed towards a decisive breakout but.
The resistance zone, highlighted in pink, acted as help in mid-September. Due to this fact, it might show pivotal but once more within the coming hours.
Conclusion
Shopping for an asset close to resistance can work in a strongly bullish market, however Fantom didn’t possess such a development. In truth, it leaned towards a short-term vary, and a long run downtrend.
Therefore, a low danger quick may be opened within the $0.237 space. Invalidation of this bearish notion can be an hourly session shut above $0.241. The mid-range worth and the vary lows may be bearish targets.
