Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion
- Fantom bounces arduous from the $0.23 area of help
- The short-term outlook was additionally strongly bullish and might see FTM rally increased
Over the previous couple of days, beforehand stablecoin-hugging merchants and buyers have deployed capital and entered the crypto markets with some confidence. Evidence for this was current on the Tether Dominance chart which fell from 8.27% on Monday to face at 7.94% at press time.
Read Fantom’s [FTM] Price Prediction 2023-24
This indicated shopping for stress might have appeared over the previous two days. Fantom rallied after a drop to $0.223 and confirmed indicators of shifting again towards $0.26 and $0.289. With Bitcoin additionally capable of break above $17.8k, a few bullish days could possibly be forward.
The confluence between Point of Control and inefficiency meant bulls had the higher hand
From 28 November to 2 December, Fantom rallied from $0.185 to $0.255. This represented beneficial properties of round 37%. In doing so, FTM left behind an inefficiency on the 12-hour chart. Highlighted in white, this FVG has already been visited, and the value climbed increased swiftly.
The FVG additionally has confluence with the Volume Profile Visible Range’s Point of Control, which lay at $0.228. The decrease timeframe bullish market construction break that occurred on 13 December when FTM broke above $0.242 additionally strengthened the bullish place.
On decrease timeframes, the $0.238-$0.242 has been an necessary zone. A retest of the identical in quest of liquidity can supply merchants with a good risk-to-reward shopping for alternative.
The RSI confirmed momentum remained bullish however has weakened over the previous two weeks. At the identical time, the value has shaped decrease highs, therefore this fall off on momentum was comprehensible. So lengthy as FTM can preserve itself above the $0.222 mark, its bullish bias can be preserved. Meanwhile, the OBV has been flat in December.
Any patrons within the neighborhood of $0.24 can look to take revenue on the Value Area High at $0.257 (which can also be a native resistance) and the $0.289 resistance ranges.
Open Interest picked up drastically in late November and merchants stay bullish
During FTM’s fast rally late in November, the Open Interest noticed a big transfer upward. Just earlier than this rally, it had been flat close to the $23 million mark, but it surely surged to virtually $72 million simply a few days thereafter. This confirmed a sturdy bullish conviction behind the rally.
The sweep of the FVG was accompanied by a fall in OI. These indicated bulls had been doubtless being pressured to shut at a loss. However, the funding price has been optimistic in latest days and confirmed merchants remained bullishly positioned.
If FTM can transfer again above $0.255, and the OI additionally perks up, it could be a agency indication of bullish intent.