Fantom’s 5-week profitable streak is at risk — Will FTM value lose 35%?

by Jeremy

The worth of Fantom (FTM) dangers pulling again in February as a consequence of a rising divergence between its value and momentum in latest weeks.

FTM value rallies 230% after Cronje’s 2023 roadmap

FTM’s value has grown by 230% up to now 5 weeks, buying and selling at $0.61 on Feb. 5. The rally got here as part of a broader crypto market restoration however outperformed most top-ranking crypto property as a result of hype created by Andre Cronje.

Cronje is the co-founder and architect of Fantom’s layer-1 blockchain. On Dec. 26, 2022, the developer launched a letter discussing the objectives and priorities for the Fantom ecosystem in 2023, together with his intention to permit decentralized app builders to earn 15% of the community’s income.

The FTM value has seen 5 weeks of positive factors in a row since Cronje’s letter to the Fantom Basis group.

FTM/USD weekly value chart. Supply: TradingView

The FTM/USD pair appears prepared to shut the week ending Feb. 5 with at the least a 25% revenue, helped by Cronje’s newest Twitter thread that offers 13 the explanation why Fantom might be among the finest layer-1 blockchains in 2023. 

Fantom value technicals trace at correction forward

However, FTM’s ongoing rally dangers exhaustion as a consequence of a rising bearish divergence between its rising value and falling momentum.

On the every day chart, FTM/USD has fashioned larger highs since mid-January, whereas its relative energy index (RSI) has made decrease highs. As a rule of technical evaluation, such a discrepancy implies that the upside momentum is slowing.

FTM/USD every day value chart that includes bearish divergence. Supply: TradingView

As well as, the RSI stays above 70, suggesting FTM is “overbought.“ It additionally hints about short-term bullish exhaustion and attainable sideways or downward value motion within the coming days.

Associated: Crypto fast hits: 8 easy steps to a number of weekly winners

FTM dangers crashing towards $0.42, or 35% from present value ranges, given the extent’s latest historical past as resistance. Furthermore, an in depth beneath $0.42 would deliver FTM’s 200-day exponential transferring common (200-day EMA; the blue wave) at $0.38 into view as the following draw back goal.

FTM/USD every day value chart. Supply: TradingView

General, Fantom maintains its bullish bias so long as it stays above its 200-day EMA and the 50-day EMA (the crimson wave). 

This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a choice.