Fantom still looks bullish despite the heightened volatility in the cryptocurrency markets. The Layer 1 blockchain’s FTM token has rebounded from crucial support with little to no resistance ahead.
Fantom Looks Primed for Higher Highs
Fantom’s uptrend looks strong despite the 30% correction it suffered after making a new all-time high at nearly $3.50.
The Proof-of-Stake chain’s FTM token is currently sitting on top of a significant support barrier represented by the lower boundary of a parallel channel that has developed on its 12-hour chart since mid-September. Every time FTM has risen to this technical formation’s upper trendline, it has been rejected and retraced to the pattern’s lower edge. From this point, it tends to rebound, which is consistent with the characteristics of a parallel channel.
Following Fantom’s recent 30% correction, the channel’s lower trendline has held and allowed prices to partially recover. Further buying pressure around the current price levels could push FTM toward the channel’s middle or upper trendline, where resistance sits at $3.50 and $4.50 respectively.
It is worth noting that the support zone between $2.50 and $2.30 should play a vital role in Fantom’s uptrend. A spike in selling pressure that pushes FTM below this crucial demand barrier could invalidate the optimistic outlook, potentially leading to a 20% retrace toward $1.90.