Fantom Hits Resistance After 50% Upswing
2022.04.03 10:10
Fantom’s FTM token has encountered a challenging hurdle on its uptrend.
Key Takeaways
- Fantom has risen by more than 50% over the past two weeks.
- The Layer 1 token has reached a critical area of resistance.
- Slicing through $1.63 could catapult FTM toward $2.
Fantom managed to recover significantly from the downtrend it entered in late January. Still, there was one hurdle FTM must overcome to be able to march to greener pastures.
Fantom At Make-Or-Break Point
Fantom was soaring as it attempted to catch up with the rest of the market.
Fantom suffered a steep correction that began in late January to hit a yearly low of $1.04 on Mar. 14. The Layer 1 token appeared to have formed a local bottom because its price had risen by more than 50% since then. Although a few obstacles are ahead, FTM may have the strength to advance further.
From a technical perspective, it appeared that Fantom had met stiff resistance after the recent upswing. The 50-day moving average at $1.54 seemed to be keeping FTM at bay, preventing it from making higher highs. A decisive daily candlestick close above this resistance level and the 61.8% Fibonacci retracement level at $1.63 could encourage sidelined investors to get back in the market.
After breaching such a critical resistance zone, a spike in buying pressure could propel Fantom towards the next supply area between the 50% and 38.2% Fibonacci retracement levels. These key resistance points sit at $1.87 and $2.15, respectively.
FTM/USD Daily Chart
Although things appeared to be looking up for Fantom, waiting for a sustained close above the $1.54-$1.63 resistance wall is imperative. Failing to overcome this critical hurdle could result in a spike in profit-taking, pushing FTM back down. Under such unique circumstances, the Layer 1 token would likely dive to the recent low at $1.04 to attempt to form a double bottom pattern.
