Fantom (FTM) breaks 43-day resistance, what next?

Fantom (FTM) has been rising since February 24 and it broke above the descending resistance line. However, the key horizontal resistance level has yet to be reached.

FTM is down 61% versus ATH

FTM has been falling since Jan. 17 when it peaked at $3.37. The downtrend led to a low of $1.30 on February 24th. That represents a 61% drop from the high.

The bounce created a long wick below and served to confirm the $1.35 area as support. This zone has been forming since October 2021, so it is an important level and is expected to provide support on any pullback.

FTM has since risen and is approaching the $1.95 resistance area.

Daily FTM/USDT Chart | Source: TradingView

FTM boom

Despite the ongoing recovery, technical indicators have yet to confirm the uptrend.

While both the MACD and RSI are bullish, the former is in negative territory and the latter remains below the 50 level. A move above these levels is needed for the trend to be confirmed bullish.

Therefore, for these indicators to enter the bullish zone, the FTM needs to move above the $1.95 resistance area.

Daily FTM/USDT Chart | Source: TradingView

However, the 4-hour chart shows that the FTM has broken the descending resistance line that has been forming since the January high, supporting the possibility that the price could revisit the $1.95 area and continue higher .

If that is the case, the next area of ​​resistance is $2.35. This is the 0.5 Fib retracement resistance and horizontal resistance area.

FTM/USDT 4 hour chart | Source: TradingView

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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