Over the last few days, retail investors in Fantom [FTM] have renewed their interest, while overall sentiment has improved. The recently increased buying pressure assisted the altcoin in reclaiming the $0.25-support.
This surge aided the token in closing above the 20/50/200 EMA. Any reversal from its trendline resistance (white, dashed) can cause a short-term decline before a subsequent rebound.
FTM was trading at $0.274 at press time, up 18.4% in the previous 24 hours.
Can the trendline resistance continue to pose hurdles?
A string of higher highs and troughs in the last two weeks pushed FTM above the 20/50/200 EMA. This progression chalked out a north-looking trendline resistance on the four-hour timeframe.
After bagging a nearly 39% ROI in the last nine days, FTM tested the $0.271-ceiling. With a solid incline in trading volumes over the past 24 hours, the buyers shared their intentions to maintain their edge in the coming sessions.
The recent rally propelled the EMAs to look north after a golden cross with the 200 EMA. This crossover opened a path for a long-term bullish perspective.
A reversal from its immediate trendline resistance can propel a pulldown towards the $0.24-$0.25 range. An immediate or potential recovery above the trendline resistance could see a first major resistance level near the $0.28-zone. A further close above this level would reaffirm the buying signal.
However, the Relative Strength Index’s (RSI) reversal from overbought levels can hinder near-term growth. Its lower peaks over the last few days bearishly diverged with the price.
Improved funding rates
Over the last few hours, FTM’s funding rate on most exchanges stood positive after marking a strong uptrend. The buyers should look for a potential setback in these rates to measure the chances of a price pulldown.
Nonetheless, the targets would remain the same as discussed. Finally, FTM shared a 75% 30-day correlation with the king coin. A close eye on Bitcoin’s movement would be imperative to make a profitable move.