Fantom: Listed here are the degrees to be careful for after FTM’s $0.65 rejection

Disclaimer: The data introduced 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 positive aspects all through January.
• A pullback to $0.5 or deeper was potential.

Fantom [FTM] noticed a pullback of practically 20% up to now three days. It’s potential that extra losses may observe. Nevertheless, 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 worth.

Learn Fantom’s [FTM] Worth Prediction 2023-24

The opportunity 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. Subsequently, patrons of FTM also can 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

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 worth fell beneath the $0.569 degree of assist and subsequently retested the identical as resistance. To replicate this, the RSI dropped beneath impartial 50 to point out bearish momentum was dominant. Nevertheless, 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 may very well be an indication that sellers didn’t have the higher hand. As an alternative, it may inform patrons {that a} shopping for alternative was brewing. Within the occasion of a plunging OBV, some warning may very well 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 can be very best. That is what patrons can look forward to a flip within the H4 construction to bullish. Following such a break, a transfer again as much as $0.66 and $0.8 will be anticipated. Nevertheless, it is rather seemingly that on the best way up, $0.6 would provide stern resistance.

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A drop in Open Curiosity indicators bearish momentum is prevalent

The spot CVD has been dropping though the worth rallied onerous. This opposed the OBV, which steadily rose alongside the worth. The liquidation charts confirmed each lengthy and quick positions have gotten wrecked up to now two weeks, particularly in late January.

5 and 6 February noticed $1 million and $900k price of lengthy positions liquidated, respectively. In the meantime, Coinglass confirmed that the FTM funding charge remained constructive, which denoted some bullish sentiment. The $0.43 degree and $0.5 are two ranges that longer-term traders can control.