Fantom (FTM) Price Prediction: FTM Targets $1.90 as Correction Ends

The Fantom (FTM) price fell after reaching a yearly high of $1.39 on Dec. 7. At its low of $1 two days later, it had declined by 30%.

Key Takeaways

The Fantom (FTM) price recovered quickly after dropping to a low of $1 two days after reaching a yearly high. It had declined by 30% at the time.

The FTM price is now approaching a crucial resistance level. Above the yearly high, there is little overhead resistance, which might result in parabolic gains.

Let’s examine the FTM price movement across several time frames to determine the likelihood of this scenario.

FTM Yearly High

The weekly time frame chart for Fantom shows that the price broke out from a long-term horizontal resistance zone at $1.08 last week, reaching a new yearly high of $1.39.

FTM then dropped but found support at the breakout zone, forming a long lower wick (white icon) and nearly moving above the weekly open. The price action appears to be a regular retest after breaking out from a key level.

Since April 2022, the FTM price has followed an ascending resistance trend line, which has been validated three times (black icons).

The trend line currently sits at $1.80, aligning with the 0.5 Fibonacci retracement resistance level.

The technical indicators are bullish, which aligns with the price action. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are both rising and positioned above their bullish thresholds.

The RSI just crossed above 70, which had previously accelerated the upward price movement.

Overall, the weekly time frame analysis for FTM is bullish, suggesting an increase toward at least $1.83, as long as FTM does not close below the $1.08 horizontal breakout zone.

FTM Correction Over?

The daily time frame chart suggests that the FTM correction is complete. This assessment is based on the price action, wave count, and indicator readings.

The wave count suggests that FTM is in wave three of a five-wave upward movement (white). Wave three has extended, and the sub-wave count is depicted in black.

The sub-wave count suggests that FTM completed sub-wave four by bouncing at the resistance trend line of a short-term parallel channel (white icons). The breakout from the channel confirms that the increase is impulsive.

The daily RSI has formed a hidden bullish divergence (green), which is another indication that the FTM price increase will continue.

If wave three is 2.61 times the length of wave one, the FTM price will reach a high of $1.91 (white). Giving sub-wave five the same length as waves one and three combined (black) yields a nearly identical target.

This zone will likely serve as the local top because it coincides with the long-term Fibonacci resistance and resistance trend line.

It’s important to note that the high will not mark the end of the upward price movement, but rather a temporary top before the increase eventually continues.

FTM Aiming for $1.90

The FTM price has dropped from a long-term horizontal resistance zone and is now trading within a short-term ascending parallel channel.

Both resistances have been validated as support, indicating that the upward price movement is set to continue. Before forming a local top, FTM could reach a high in the region of $1.85-$1.90.