Overcoming this region can trigger another 20% spike

Fantom is currently in a stabilization period following a near 90% percentage hike in the last eight days. However, the abundance of buy pressure at near-term support levels preserved FTM’s value above $2. Once the next upcycle begins, FTM would look to register a 20% run-up to 9 November’s swing high of $3.17 if a key resistance zone is overcome. At the time of writing, FTM traded at $2.3, down by 0.8% over the last 24 hours.

Fantom 4-hour time frame

Fantom was back within an optimistic mid-long narrative after the 200-SMA and an upper sloping resistance line flipped to bullish. This move also saw FTM flip its daily 50-SMA (not shown) once the price closed above $2. With short-sellers now out of the picture, FTM needed to get past a single hurdle in order to resume its uptrend.

This critical region lay between $2.45-$2.67. The abundance of sell pressure within the zone has triggered three market drawdowns since October, spanning between 10%-30%. Hence, an external push via a broader market rally could be crucial for bulls. Should steady buy volumes help FTM recover above $2.67, a 20% rally could soon follow provided bulls scathe past the $3-mark.

On the flip side, a close below $2 could invite additional sell pressure from short-mid term investors. Bulls would then have to maintain the price above the 200-SMA (green) to overcome a possible downtrend.

Indicators

FTM’s 4-hour RSI eased from overbought levels and was currently resting around 50, while the Awesome Oscillator’s bearish twin peak presented a sell signal. However, such indications were normal during market pullbacks. What’s important is that each index holds above their respective half-lines as selling pressure fizzles out.

Conclusions

FTM was expected to bounce back from near-term support levels and challenge a key price barrier over the coming days. Observers should keep an eye out for a close above $2.67, which could trigger a 20% run-up to $3.17. On the flip side, caution must be taken if FTM closes below $2. Such a move would put FTM at the risk of a 15% decline.