Cryptocurrency

Fantom: Assessing the chances of a 20% plunge in September

Disclaimer: The info offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.

Fantom has traded inside a vary since the sharp drop in early May. This four-month-old vary was but to be damaged. In the previous ten days, the value moved beneath the mid-point of the aforementioned vary.

Bitcoin additionally regarded bearish on the value charts, and the month of September may see additional losses. Such a transfer downward for Bitcoin may see Fantom shed worth as effectively, to achieve its vary lows.

FTM- 1-Day Chart

Source: FTM/USDT on TradingView

On the each day timeframe, the vary (yellow) on the value chart was from $0.42 to $0.2. Its mid-point sat at $0.32. In August, this degree was flipped from help to resistance on the each day timeframe. On shorter timeframes, FTM has been in a downtrend since early August.

At the similar time that the mid-point was damaged as help, the RSI additionally fell beneath the impartial 50 mark. This confirmed rising bearish sentiment. The DMI additionally noticed its ADX (yellow) and -DI (purple) proceed to ascend above the 20 mark. The inference was, as soon as once more, the strengthening of a downward development.

FTM- 1-Hour Chart

Assessing the chances of a 20% plunge for Fantom in September

Source: FTM/USDT on TradingView

On the hourly chart, the previous ten days noticed the volatility scale back. The value hugged the $0.26 help zone because it bounced weakly off the similar space. Eventually, the bulls had been exhausted. The sharp drop of the earlier day noticed FTM create a giant candle downward.

A set of Fibonacci retracement ranges (yellow) had been plotted. The 50% and 61.8% retracement ranges had been at $0.255 and $0.259. These two ranges had been slightly below the former demand zone (purple field) on the charts.

The RSI was firmly bearish and clambered above the 30 mark, however the sellers nonetheless held sway. The OBV additionally noticed a sharp drop to spotlight heightened promoting quantity in latest hours.

Conclusion

The each day timeframe chart confirmed that a transfer to the $0.2 area may supply a beautiful shopping for alternative. In the meantime, the greater timeframe bias was southward.

On the hourly chart, a bounce towards the $0.25 space may materialize. Such a transfer could be safer to promote than to purchase. The bears have proven their dominance but once more, and the market construction didn’t encourage shopping for. The 23.6% extension degree at $0.23 can be utilized to take revenue on shorts from the $0.25 zone.

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