Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Fantom had bearish short-term momentum after strong gains in January. A pullback to $0.5 or lower was possible.
Phantom [FTM] saw a drop of almost 20% in the past three days. More losses may follow. However, the higher timeframe bias remained strongly bullish. Significant support levels near $0.5 and $0.43 could trigger a positive reaction from the price.
Read Fantoms [FTM] Price Forecast 2023-24
The possibility of a recovery and another upward move for Fantom depends on Bitcoin [BTC]. A bullish BTC would support the efforts of FTM’s bulls. Therefore, buyers of FTM can also look out for a bearish move by BTC. Any drop below $22.3k could deter buyers and trigger a selloff.
The Fibonacci retracement levels show that a further downtrend is likely for FTM
Based on the move up from $0.292 to $0.655 in January and early February 2023, a series of Fibonacci retracement levels (yellow) was drawn. It showed that the 61.8% and 78.6% levels were at $0.43 and $0.37 respectively.
The four-hour market structure was bearish after the price fell below the $0.569 support level and then retested as resistance. To reflect this, the RSI fell below the neutral 50 to indicate that bearish momentum was dominant. However, the OBV held on to the support level indicated on the charts.
If the OBV does not see a sharp drop in the coming days despite a fall in FTM prices, it could be a sign that sellers did not have the upper hand. Instead, it could inform buyers that a buying opportunity was imminent. In the event of a crashing OBV, some caution may be required.
In either scenario, a retest of the 61.8% or 78.6% retracement levels would be ideal before a bullish market structure breaks through on the four-hour chart. This is what buyers can wait for a flip in the H4 structure to turn bullish. After such a break, a move back to $0.66 and $0.8 can be expected. However, it is very likely that $0.6 would offer solid resistance on its way up.
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A drop in Open Interest indicates bearish momentum
The spot CVD is falling, although the price rose sharply. This opposed the OBV, which grew steadily with the price. The liquidation charts showed that both long and short positions have been wrecked over the past two weeks, especially at the end of January.
On February 5 and 6, $1 million and $900,000 in long positions, respectively, were liquidated. Meanwhile, Coinglass showed that the FTM funding rate remained positive, indicating optimistic sentiment. The $0.43 and $0.5 levels are two levels that investors can keep an eye on over the longer term.
This post Fantom: Here are the levels to watch out for after FTM’s $0.65 rejection
was published first on https://ambcrypto.com/fantom-here-are-the-levels-to-watch-out-for-after-ftms-0-65-rejection/