Fantom – The Path Ahead, Deep DiveTLDR:
Unfortunately, Fantom lost all bullish structure.
The upside of this correction is that FTM’s price is good enough to DCA if you are a long-term investor. I provided the next support levels; in case you are interested.
I charted three scenarios, two relatively bullish and one bearish scenario.
I included two possible swing trade ideas. However, I must say, there are better trades out there, IMO.
Background:
On November 2022 fantom created a bottom in the region of 0.1636 – 0.19 USD in a double bottom.
The first significant resistance FTM had to breach to was in the region of 0.255 – 0.276 USD, which is the same as FTM’s current price.
During FTM’s impulse to the upside it achieved nearly 300% price appreciation in 74 days.
In the past 4.5 months FTM’s price corrected by more than 67%. The time ratio between impulse and correction is 1:2 which is indicative of a deep correction possibly paving the way for the next leg up.
I immediate Support & Resistance Levels:
Resistance:
0.2761. Weekly & Daily Level
Support:
0.255. Previous ChoCh level.
0.2251. 50% of the Wick and 0.786 Fib Retracement (approx.).
0.2124. Daily Wick.
0.1883. Double bottom Support.
0.1637 Double Bottom Support.
Where Do We Go from Here?
Green Scenario:
If BTC and the broader crypto market change direction in the next few days, there is no reason why FTM should be the exception. The first sign of recovery would be a break above the immediate resistance of 0.2761 USD, retest as support and a strong move up.
Orange Scenario:
Assuming that the current correction is not resolved to the upside in the short-term, I expect FTM to retrace at least to the 50% of the wick, move up towards the 0.2761 level resistance and continue up.
Red Scenario:
If the whole market goes to crap, FTM will continue to dip further. However, I don’t think it is likely to drop more than previous bear market low. But, who knows!? Everything is possible (just remember that the good is also possible).
Possible trade Ideas:
1. Support/Resistance Flip
Entry: 0.2761 USD, after retest as support
SL: 0.25 USD, below the last support level
Target: 0.55 USD
TP: 0.33, 0.39, 0.55 USD.
R: R: 1:5 assuming TP2 is achieved.
2. Wick Fill Trade
Entry: 0.2252 USD. 50% of the Wick + 0.786
SL: 0.21 USD. Below the wick.
Target: 0.39 USD
TP: 0.276, 0.33, 0.39 USD. Leave a moon bag.
NFA.
What do you think? Please share in the comments.
Best Wishes to all.
