Unlike its peers, retail traders have shown interest in Fantom’s (FTM) market in the last 24 hours. As a result, the buyers increased their pressure, assisting FTM to exit its ten-day low volatility phase near the Point of Control (POC, red).
On the four-hour timeframe, the recent upswing created a rising wedge. Any close below the pattern would put the alt at risk of a short-term drop. FTM was trading at $0.4272 at press time, up 18.63 percent in the previous 24 hours.
4-hour FTM Chart
On FTM’s four-hour chart, a series of lower highs and higher lows formed a symmetrical triangle. Given the previous drawdown and market dynamics, the pattern was initially interpreted as bearish. However, the ongoing progress in relation to ‘fUST,’ its native stablecoin, invalidated the short-term bearish tendencies.
FTM finally tested the $0.42-level after jumping above its POC after racking up non-linear 24-hour gains. Buyers made a visibly strong move, as evidenced by the recent bullish engulfing candlestick on FTM’s chart, with a jump of over 98 percent in daily trading volumes.
Any rejection of higher prices now could result in unfavorable short-term losses. A close below the wedge would open the door to the $0.37-$0.34 range before buyers recoup their losses. The bulls would aim for a gradual uptrend in the coming months, with the POC serving as a critical area of value. If the sellers disappear, an immediate recovery from the $0.42 level would aim to break the 38.2% Fibonacci level.
Recently, the RSI managed to climb back above 63. As a result, the market was showing signs of strength. However, as the index approached the overbought region, it began to flatten.
In addition, the CMF fell slightly after reaching its overbought region. A prolonged correction could postpone the potential bullish recovery efforts.
FTM may suffer a short-term setback due to overstretched readings on the RSI and CMF, as well as the formation of a rising wedge. However, given the recent increase in buying volumes, they would like to hold their ground and propel a relatively quick recovery in the coming sessions.
Furthermore, FTM has a 96% 30-day correlation with the king coin. To make a profitable move, keep a close eye on Bitcoin’s movement.