Fantom price analysis: How Far Can FTM’s New Recovery Rally Go?

The last two months in the crypto market have been a constant struggle between the sell-off and uncertainty in the crypto market. Amid this chaos, the FTM/USDT pair showcased its price action behaving in response to a descending resistance trendline, whose breakout triggered a significant recovery rally. The coin price has recently sliced through another resistance of the $0.3 mark, projecting a fresh entry opportunity.  

Key points

• The FTM buyers provide a massive breakout from the $0.32 resistance, with a 15.36% intraday pump
• Potential bullish rally to rechallenge the $0.43 mark
• A breakdown from the $0.3 mark would invalidate the bullish thesis

Source- Tradingview

From May 23rd to July 5th, the FTM price faced dynamic resistance from the downsloping trendline, which plunged it to a low of $0.1961. However, on July 6th, the coin price breached the resistance trendline and surged to the immediate supply zone of $3.

Furthermore, the profit-booking from short-term trades triggered a significant retest phase and provided potential buyers to scoop FTM at a discounted price. The post-retest rally surged the altcoin by 42%, which currently trades at the $0.332 mark.

Amidst this recovery, the FTM chart shows a massive breakout from the $0.32 resistance, offering a potential footing to raise the price higher. Moreover, the 121% rise in volume accentuates a legitimate breakout, indicating the buyers are ready for another leg up.

However, a retracement seems plausible after this sudden rally, which could retest the breached resistance of $0.32. If the coin price sustains above this level, the buyers may drive the recovery rally 30% higher to the $0.433 mark, followed by $0.52.

On a contrary note, if the FTM price fails to hold above the $0.433 flipped support, the sellers may pull the coin back to the $0.3 mark, indicating the continuation of range consolidation.

Technical indicator

RSI indicator: The daily-RSI slope shows nearly a perpendicular rally as it hits the 65% mark. The evident bullish divergence in the indicator chart reflects the underlying bullishness in the FTM price.

EMAs: In the recent price jump, the buyers reclaimed the 20-and-50-day EMA slopes. This breached resistance could flip to viable support and sustain the bullish recovery longer.

• Resistance level- $0.43 and $0.52
• Support levels- $0.32-0.3 and $0.21