Fantom’s 5-week winning streak is in danger — Will FTM price lose 35%?

The value of Fantom (FTM) dangers pulling again in February as a consequence of a rising divergence between its value and momentum in current weeks.

FTM value rallies 230% after Cronje’s 2023 roadmap

FTM’s value has grown by 230% up to now 5 weeks, buying and selling at $0.61 on Feb. 5. The rally got here as part of a broader crypto market restoration however outperformed most top-ranking crypto property because of the hype created by Andre Cronje.

Cronje is the co-founder and architect of Fantom’s layer-1 blockchain. On Dec. 26, 2022, the developer launched a letter discussing the targets and priorities for the Fantom ecosystem in 2023, together with his intention to permit decentralized app builders to earn 15% of the community’s income.

The FTM value has seen 5 weeks of positive factors in a row since Cronje’s letter to the Fantom Foundation crew.

The FTM/USD pair seems to be prepared to shut the week ending Feb. 5 with at the very least a 25% revenue, helped by Cronje’s newest Twitter thread that provides 13 the explanation why Fantom might be probably the greatest layer-1 blockchains in 2023. 

Fantom value technicals trace at correction forward

Nevertheless, FTM’s ongoing rally dangers exhaustion as a consequence of a rising bearish divergence between its rising value and falling momentum.

On the each day chart, FTM/USD has shaped larger highs since mid-January, whereas its relative power index (RSI) has made decrease highs. As a rule of technical evaluation, such a discrepancy implies that the upside momentum is slowing.

In addition, the RSI stays above 70, suggesting FTM is “overbought.“ It additionally hints about short-term bullish exhaustion and attainable sideways or downward value motion within the coming days.

Related: Crypto fast hits: 8 easy steps to a number of weekly winners

FTM dangers crashing towards $0.42, or 35% from present value ranges, given the extent’s current historical past as resistance. Moreover, a detailed under $0.42 would carry FTM’s 200-day exponential transferring common (200-day EMA; the blue wave) at $0.38 into view as the following draw back goal.

Overall, Fantom maintains its bullish bias so long as it stays above its 200-day EMA and the 50-day EMA (the pink wave). 

This article doesn’t comprise funding recommendation or suggestions. Every funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a call.