Disclaimer: The info provided does not make up monetary, financial investment, trading, or other kinds of guidance and is entirely the author’s opinion
- FTM might continue with its sag momentum.
- FTM tape-recorded a decrease in open interests in the futures market.
Fantom [FTM] used over 80% gains after rallying from $0.1940 to a high of $0.3577. The rally appeared to cool off after FTM dealt with a cost rejection at $0.3462.
At press time, FTM was trading at $0.3203 with a possibility of a more sag if more bears came on board.
Read Fantom [FTM] Rate Prediction 2023-24
The $0.3128 assistance: Can it hold?
Source: FTM/USDT on TradingView
FTM’s 12-hour chart revealed the Relative Strength Index (RSI) had actually greatly dropped however was still in the overbought zone. This suggested a sharp decrease in purchasing pressure as holders sold their holdings to secure gains.
Similarly, the On Balance Volume (OBV) showed a small decrease after a huge uptrend just recently. It reveals that trading volume dropped a little after bears relocated.
Given that the overbought condition makes a possession ripe for pattern turnaround, FTM’s existing sag might continue. This might see bears press it to retest the $0.3128 assistance. A break listed below the assistance might be possible if the BTC uptrend likewise reverses in the next couple of days.
However, the sag momentum might be kept in check by the 61.8% Fib level of $0.2953. $0.3128 and $0.2953 might be short-selling targets if the FTM sag selects rate in the next couple of days/weeks.
Alternatively, bulls might press FTM above $0.3462 if BTC is bullish, revoking the above bearish predisposition. Such a relocation might enable bulls to target $0.3577.
FTM’s weighted belief was favorable, while open interest fell sharply
Source: Santiment
FTM’s weighted belief was favorable at press time, revealing experts were still bullish on the property. The current uptrend saw short-term holders make gains, as evidenced by a favorable 30-day MVRV. Long-lasting holders sustained losses.
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However, FTM’s open interest (OI) appeared to have actually peaked after a stable increase because the start of the year. The OI decreased in tandem with the rate, a most likely program of validated pattern turnaround as more cash drained of FTM’s futures market. This might show that FTM might witness additional rate drop.
Source: Coinglass
The weighted belief revealed a bullish outlook, while the futures market leaned towards a bearish FTM. That’s a combined signal. BTC’s rate action can provide financiers a more precise forecast of FTM rate motion.
As such, if BTC breaks listed below $20.15 K, FTM might breach the $0.3462 assistance and advance southwards to $0.2953. BTC’s relocation beyond $21.23 K might incentivize FTM bulls to get rid of the $0.3462 difficulty and retest its overhead resistance at $0.3577.
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