Fantom (FTM) has seen a remarkable increase in its price, with a surge of 58% from the November low to reach $1, followed by an 8% pullback. Despite encountering resistance, the overall trend remains bullish, leading to two potential scenarios for the cryptocurrency. The analysis of the daily chart reveals a strong bullish breakout after a corrective structure, showcasing a series of recovery highs and lows from August to November.
The price of FTM initiated an impulsive wave structure, hitting highs and lows such as $0.54, $0.37, $0.76, and $0.53 as it progressed through its price movements. The current rally is considered part of wave (v), with the price hovering around $0.97 and showing strong momentum. The breakout aligns with Fibonacci retracement levels, confirming a positive trajectory while the Relative Strength Index (RSI) indicates potential for the rally to continue further. However, there are cautionary signs of potential exhaustion due to the sharp price movements, emphasizing the need for monitoring.
FTM could potentially enter a consolidation phase to consolidate its gains before continuing the upward trend to complete its five-wave pattern. Resistance and support levels play a crucial role in determining the future movement, with levels such as $1.15 and $0.76 identified as significant points of interest. The analysis suggests that sustaining above $0.76 is vital for maintaining the bullish momentum, with a further breakout above $1.15 opening up possibilities for extended upside targets. On the flip side, failure to hold crucial support levels could lead to retracements and changes in the bullish wave structure.