This is the next target for ATOM and FTM after the recession
ATOM and FTM appear bullish as buying pressure mounts. Both could retest the previous all-time high (ATH) if momentum is maintained.
ATOM price is stable
ATOM and FTM are beginning to recover from the recent market crash.
ATOM recovers quickly after bouncing off a critical support area. The price is up over 36% in the last 4 days and is just a tad below the previous ATH of $44.45. Despite last week’s sharp correction, it appears to have found a steady demand barrier that is acting as a recovery point.
From a technical point of view, the price has recovered from the middle trendline of the parallel channel in which it has been operating since September 2021. Each time ATOM breaks down to the lower boundary of this technical pattern, the downtrend hits the exhaustion threshold. But when the price moves back to the middle line or upper border of the pattern, it repeatedly rejects.
The recent rebound from the channel’s middle trendline suggests that ATOM is active in an uptrend and could touch the upper border of the pattern near $45. If the bullish momentum is strong enough, the price can break this resistance and move towards a new ATH of $66.
However, ATOM’s bullish outlook hinges on its ability to sustain above the trendline in the middle of the channel. A breakdown of support could put the bullish argument on hold and result in a drop to the lower border of the channel around $20.
FTM is looking for support
The recent downturn in the crypto market led to a 50% correction on FTM. However, the token appears to have found a strong foothold.
The 100 and 50 day moving averages (MAs) are very important levels for the FTM’s trend. These momentum indicators acted as strong support during the recent correction and prevented the price from falling any further. FTM must now continue to hold above this demand zone for the price to recover.
The price holding the $2.26 level as support will give FTM an opportunity to surge to $2.9. However, it must first close decisively above the $2.6 resistance to encourage marginal investors to re-enter the market.
FTM/USD | Source: TradingView
It should be noted that any signs of weakness around $2.26 could invalidate the optimistic outlook. Accordingly, this should trigger another correction from the 200-day ma at $1.67.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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