Cryptocurrency

Fantom traders going short can have stop-loss above this level

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the opinion of the author.

Bitcoin fell beneath the $20k mark in latest hours. The failure of the bulls to defend each the $20.8k and the $20k ranges indicated that sentiment was nonetheless strongly fearful within the crypto market.

Fantom confirmed hints of a bullish break on the transfer to $0.25 two days in the past. This transfer was not sustained, and at press time the bias appeared to flip to bearish as soon as extra.

FTM- 4-Hour Chart

Source: FTM/USDT on TradingView

The H4 chart confirmed a bearish bias for FTM, nonetheless, this was flipped a few days in the past. The downtrend shaped a decrease excessive at $0.26, however the value closed a session simply above this mark.

At the identical time, Fantom shaped larger lows as effectively, evidenced by the rising trendline assist.

Yet, this short-term uptrend broke down in latest hours of buying and selling. The low at $0.22 was damaged, and the trendline assist as effectively.

FTM- 1 Hour Chart

Fantom breaks trendline support, could this be a shorting opportunity?

Source: FTM/USDT on TradingView

On the hourly chart, the upper lows that the trendline touches are extra clearly seen. In the previous few hours of buying and selling, this trendline assist has been damaged. At the identical time, as a result of the worth dropped decrease than a better low of the uptrend, a market construction break was witnessed.

Hence, the construction now favored the bears, however due to the transfer to $0.255, the bias was extra difficult than an easy bearish one.

The break of the trendline assist urged {that a} retest of the identical may supply resistance, and a transfer towards the lows at $0.2 may materialize.

Fantom breaks trendline support, could this be a shorting opportunity?

Source: FTM/USDT on TradingView

The hourly RSI slipped under impartial 50 to spotlight bearish strain. It has not been in a position to climb above the 60 mark over the previous week. This meant the consumers lacked power. The Stochastic RSI shaped a bullish crossover within the oversold territory. This didn’t essentially point out a robust transfer larger for Fantom.

The OBV was unable to scale the highs from a few days in the past and signaled the shortage of shopping for strain as effectively. The CMF was additionally beneath -0.05 to point out important capital move out of the market.

Conclusion

The indicators on the decrease timeframe confirmed bearish momentum and important promoting strain. On the H4 chart as effectively, the bullish bias was not notably robust. Rather, a bearish bias was favored.

A retest of the previous trendline assist, now resistance, can be used to enter a short place. A stop-loss above the $0.25 resistance can be thought-about, whereas the native lows at $0.2 can be used to take a revenue.

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