FTM Technical Analysis: Crucial Support at $1.899, Trend Reversal Seen in the Trend

Ankita  |  Oct 18, 2021

Fantom is a directed acyclic graph (DAG) smart contract platform providing decentralized finance (DeFi) services to developers using its own bespoke consensus algorithm. Fantom (FTM) attempts to use a new scratch-built consensus mechanism to facilitate DeFi and related services on the basis of smart contracts. The Fantom Foundation was founded by South Korean computer scientist Dr. Ahn Byung Ik. Currently, the platform’s CEO is Michael Kong.

Past Performance

The FTM opened at $2.03 on 11 October 2021. The week witnessed a valley in the price chart. It closed on 17 October 2021 at $2.30 with an overall positive change of 13.3%.

TradingView Chart

FTM Technical Analysis

The past week started with a bearish signal. The price corrected itself for 4 days. Then it took crucial support at $1.899 and reversed the trend. Hence, a valley was seen across the week. The current trading price of FTM is $2.22 which is about 3.6% down as compared to yesterday’s close.

OBV is showing a horizontal line with a slight incline at the end. This means that buying and selling pressures are almost balanced. FTM traders may hold their current position or take a long position.

RSI is currently at 62.39%. This is a bullish signal as it is above the equilibrium level. Traders may take a long position here.

As a lagging indicator, MACD is confirming the last week’s valley pattern as seen in the chart. The fats line was about to go below the slow line, but then it reversed the direction. After this, both lines are moving close to each other in a positive direction. This is a neutral signal. There is no divergence from the price chart as well. Traders may hold their current positions.

Day-Ahead and Tomorrow

Fib retracement shows that the FTM price has successfully crossed the Fibonacci level at $2.09. The price trend will now be tested at the next fib level at $2.45.

Thus, the indicators are giving mixed signals. This means that the traders may wait for a significant variation in the chart before making a clear call. However, they may take a long position by keeping the target at $2.46 and the stop loss at $1.9.

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