FTM Rally Cools Off After Facing Price Rejection, What’s Next?

• FTM recently recorded over 80% gains but the rally seemed to cool off after facing a price rejection at $0.3462.
• The Relative Strength Index (RSI) and On Balance Volume (OBV) have both dropped, indicating a sharp decline in buying pressure as holders sold off their holdings.
• Potential short-selling targets could be $0.3128 or $0.2953, while potential bullish targets could be $0.3462 or $0.3577.

Fantom [FTM] recently offered over 80% gains after rallying from $0.1940 to a high of $0.3577. However, the rally seemed to cool off after FTM faced a price rejection at $0.3462. At press time, FTM was trading at $0.3203 with a possibility of a further downtrend if more bears came on board.

The 12-hour chart of FTM showed the Relative Strength Index (RSI) had sharply dropped but was still in the overbought zone. This indicated a sharp decline in buying pressure as holders sold off their holdings to lock in gains. Similarly, the On Balance Volume (OBV) exhibited a slight decline after a massive uptrend recently. It shows that trading volume dropped slightly after bears moved in. Given that the overbought condition makes an asset ripe for trend reversal, FTM’s current downtrend could continue. This could see bears push it to retest the $0.3128 support. But a break below the support could be feasible if the BTC uptrend also reverses in the next few days. However, the downtrend momentum could be kept in check by the 61.8% Fib level of $0.2953. Therefore, $0.3128 and $0.2953 could be short-selling targets if the FTM downtrend picks pace in the next few days/weeks.

On the other hand, bulls could push FTM above $0.3462 if BTC is bullish, invalidating the above bearish bias. Such a move could allow bulls to target $0.3577. FTM’s weighted sentiment was positive, while open interest fell sharply. This could mean that traders were taking profits, which could lead to further declines in price.

In conclusion, FTM could continue with its downtrend momentum if bears come on board. Potential short-selling targets could be $0.3128 or $0.2953, while potential bullish targets could be $0.3462 or $0.3577. However, traders are advised to do their own research and exercise caution while trading.

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