• FTM has fallen from its recent high of $0.3577 and is currently trading at $0.3203.
• The Relative Strength Index (RSI) and On Balance Volume (OBV) point to a possible further downtrend if more bears come on board.
• Short-selling targets are $0.3128 and $0.2953; bulls could target $0.3462 and $0.3577 if the BTC uptrend continues.
Fantom [FTM] recently witnessed an impressive rally which resulted in prices climbing from $0.1940 to a high of $0.3577. This represented gains of over 80%, as the token benefited from the overall bullish sentiment that has been seen in the cryptocurrency market. However, the rally appears to have cooled off after FTM faced a price rejection at $0.3462. At the time of writing, FTM is trading at $0.3203, with a possibility of a further downtrend if more bears come on board.
The 12-hour chart of FTM shows that the Relative Strength Index (RSI) has sharply dropped but is still in the overbought zone. This indicates a sharp decline in buying pressure as holders sold off their holdings to lock in gains. Similarly, the On Balance Volume (OBV) has also exhibited a slight decline after a massive uptrend recently, showing that trading volume has dropped slightly after bears moved in. Given that an overbought condition typically makes an asset ripe for trend reversal, FTM’s current downtrend could continue. If this happens, bears could push it to retest the $0.3128 support. A break below this level could be possible if the BTC uptrend also reverses in the coming 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 continues.
On the other hand, bulls could push FTM above $0.3462 if the BTC uptrend continues. Such a move could allow bulls to target $0.3577. FTM’s weighted sentiment is currently positive, while open interest has fallen sharply, indicating a lack of buyers in the market.
All in all, FTM could continue with its downtrend momentum, with $0.3128 and $0.2953 as potential short-selling targets. However, a break above $0.3462 could invalidate the bearish bias and allow bulls to target $0.3577.