Since the sudden drop in early May, the value of Fantom has stayed within a tight range. This 4-month range had not been broken by the altcoin. The last ten days have seen prices fall below the aforementioned range’s floor.
Further, Bitcoin’s price charts showed negative behavior, and the month of September appears to be ripe for additional drops. If Bitcoin prices drop, the alternative currency market will also suffer, which is bad news for Fantom. In that case, FTM would probe the low end of the range.
Fantom 1Day Chart
Fantom’s price fluctuated between $0.42 and $.02 per day, as depicted on the accompanying daily chart. The median price in that region was $0.32. During August trading sessions, the alternative token moved the zone from support to resistance on the 24-hour chart. As for FTM, the shorter time frames have been in a downturn since early August.
As a result of the declines, the token even broke through the pivot point. As a consequence, the RSI dropped below the neutral value of 50. These events reinforced my increasingly pessimistic attitude. In addition, the DMI’s ADX and -DI also continued to rise above 20. That bolstered the already-strong downward trend.
Fantom Hourly Timing
The one-hour chart showed that volatility has been decreasing over the past week. While recovering weakly from the $0.26 level, the price made a brief test of support. The bulls eventually became exhausted. The prior day’s steep dip had FTM producing a big downward candlestick. FIB retracement zones were plotted by analysts. Price retracement levels of 61.8% and 50% were identified around $.259 and $.255, respectively.
On the pricing charts, the two areas were located below the former demand area. The Relative Strength Index swung wildly below the 30-level, signaling extreme negative momentum, and sellers were still there. The On-balance volume also dropped significantly, indicating increased selling pressure in the last few hours.
As a Closing Remark
An FTM move toward $0.2 on the daily chart could signal a profitable “buy” opportunity. Meanwhile, the longer-term picture was predominantly pessimistic. As seen on the 1-hour chart, Fantom has the potential to recover to $0.25. Sellers could take such measures without fear of repercussions from customers.
The bears’ dominance in the market has been reaffirmed, and the market structure at FTM did not favor buyers. Markets for 0.236 extensions can provide entry points for shorts at $0.25.