1 year ago
The FTM marketplace has turned overbought aft rallying 230% successful 5 weeks. In addition, the coin's momentum is slowing down compared to the terms boom, per method data.
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The terms of Fantom (FTM) risks pulling backmost successful February owed to a increasing divergence betwixt its terms and momentum successful caller weeks.
FTM terms rallies 230% aft Cronje's 2023 roadmap
FTM price has grown by 230% successful the past 5 weeks, presently trading astatine $0.61 connected Feb. 5. The rally came arsenic a portion of a broader crypto marketplace betterment but outperformed astir top-ranking crypto assets owed to the hype created by Andre Cronje.
Cronje is the co-founder and designer of Fantom's layer-1 blockchain. On Dec. 26, 2022, the developer released a missive discussing the goals and priorities for the Fantom ecosystem successful 2023, including his volition to let decentralized app developers to gain 15% of the network's revenue.
FTM pric has seen 5 weeks of gains successful a enactment since Cronje's "letter to the Fantom Foundation team."
FTM/USD play terms chart. Source: TradingViewThe FTM/USD looks acceptable to adjacent the week ending Feb. 5 with astatine slightest a 25% profit, helped by Cronje's latest Twitter thread that gives 13 reasons wherefore Fantom volition beryllium 1 of the champion layer-1 blockchains successful 2023.
Fantom terms technicals hint astatine correction ahead
Nevertheless, FTM's ongoing rally risks exhaustion owed to a increasing bearish divergence betwixt its rising terms and falling momentum.
On the regular chart, FTM/USD has formed higher highs since mid-January, portion its relative spot scale (RSI) has made little highs. As a regularisation of method analysis, specified a discrepancy means that the upside momentum is slowing.
FTM/USD regular terms illustration featuring bearish divergence. Source: TradingViewIn addition, the RSI remains supra 70, suggesting FTM is "overbought." It besides hints astir short-term bullish exhaustion and imaginable sideways oregon downward terms enactment successful the coming days.
Related: Crypto Quick Hits: 8 elemental steps to aggregate play winners
In result, FTM risks crashing toward $0.42, oregon 35% from existent terms levels, fixed the level's caller past arsenic resistance. Moreover, a adjacent beneath $0.42 would bring FTM's 200-day exponential moving mean (200-day EMA; the bluish wave) astatine $0.38 into presumption arsenic the adjacent downside target.
FTM/USD regular terms chart. Source: TradingViewOverall, Fantom maintains its bullish bias arsenic agelong arsenic it remains supra its 200-day EMA and the 50-day EMA (the reddish wave).
This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.
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