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Fantom (FTM) Price Is up 200% This Year, but Is It Approaching a Glass Ceiling?

2 mins
Updated by Geraint Price
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In Brief

  • Fantom (FTM) broke out from a descending resistance line.
  • It reclaimed the $0.40 resistance area.
  • The next resistance is at $1.20.
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Fantom (FTM) price has decreased during the past three days. It is possible that a short-term correction has begun.

FTM is the native token of the Fantom network, a smart contract platform designed to compete with Ethereum. Since the beginning of 2022, the price of Fantom had decreased under a long-term descending resistance line, according to the weekly time frame.

In early Nov., it broke down from the long-term $0.20 horizontal support area. However, it quickly reclaimed the area, proving that the breakdown was not legitimate (red circle). The reclaim was combined with bullish divergence in the RSI. The indicator has now moved above 50, indicating a bullish trend.

The Fantom price then broke out from the descending resistance line, validating it as well as the resistance line as support. Since then, the price has risen by a gigantic 270%, leading to a high of $0.61. Because there is no overhead resistance, the FTM token price could rise toward the $1.20 resistance level. The RSI readings also support this.

On the other hand, if the upward movement loses momentum, the future price may fall back to the $0.40 horizontal area, which is now expected to provide support.

Fantom (FTM) Price Long-Term Movement
FTM/USDT Weekly Chart. Source: TradingView

Fantom Price Chart Shows Extended Wave

The technical analysis from the daily time frame shows that the FTM price is likely in wave four of a five-wave upward movement (black). The sub-wave count is given in red. Wave three extended considerably and reached the 4.61 extension of wave one. This is often the final Fib extension level. Therefore, it is likely that wave four has begun.

If so, the 0.382 Fib retracement support level at $0.46 (white) would be the first level that could provide support.

On the other hand, an increase above the wave three high of $0.66 would invalidate this bearish forecast. In that case, the digital asset could increase further toward $1.20.

Fantom (FTM) Fib Levels
FTM/USDT Daily Chart. Source: TradingView

To conclude, the most likely Fantom price outlook for the next few months is a decrease to $0.46 followed by a sharp upward movement toward $1.20. An increase above $0.66 would mean that the correction is complete and the increase toward $1.20 has begun.

For BeInCrypto’s latest crypto market analysis, click here.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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