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3 Reasons Why Fantom (FTM) Price Could Double

2 mins
Updated by Geraint Price
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In Brief

  • Fantom (FTM) broke out from a long-term descending resistance line.
  • It reclaimed the $0.39 horizontal area.
  • The weekly and daily RSI are bullish.
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The Fantom (FTM) price has possibly completed a short-term correction and begun the final portion of a significant upward movement.

The FTM price had fallen under a descending resistance line since reaching an all-time high in January 2022. The decrease led to a low of $0.164 in November 2022, causing a breakdown from the $0.20 support area. However, that turned out to be a deviation (red circle), and the Fantom price has increased since.

The upward movement was preceded by a bullish divergence in the RSI (green line). Moreover, the indicator is now above 50, another sign of a bullish trend. The upward movement led to a high of $0.655 in January. While the price decreased afterward, it bounced at the $0.39 horizontal area, creating a long lower wick and validating it as support.

If the increase continues, the next closest resistance would be at $1.15. On the other hand, a close below $0.39 could lead to a fall toward $0.20.

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

Can Fantom (FTM) Price Move to $1.15?

The daily time frame aligns with the readings from the weekly one, supporting the continuation of the upward movement. There are several reasons for this. 

Firstly, the price seems to have completed a fourth-wave pullback after bouncing at the resistance line of the previous ascending channel. 

Secondly, the daily RSI has moved above 50. Lastly, the FTM token price is in the process of breaking out from a short-term descending resistance line (dashed). The breakout can be confirmed in the next 24 hours.

If the price is indeed in the fifth wave, the first potential target for the top would be at $0.87, created by the 1.61 external Fib retracement of the most recent drop. However, if wave five extends and has the entire length of waves one and three combined, it could move all the way to $1.22 (white). Since this also has confluence with the $1.15 horizontal resistance area, it would make more sense if it acts as the top. 

On the other hand, a fall below the wave four low at $0.30 would invalidate this bullish forecast. In that case, the FTM price could fall toward $0.20 once more.

Fantom (FTM) Wave Count
FTM/USDT Daily Chart. Source: TradingView

To conclude, the most likely FTM price forecast is an increase toward at least $0.87 and possibly $1.15-$1.22. This would be invalidated by a fall below $0.30. In that case, the FTM price could fall to $0.20.

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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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