The worth of Fantom (FTM) dangers pulling again in February as a consequence of a rising divergence between its worth and momentum in latest weeks.
FTM worth rallies 230% after Cronje’s 2023 roadmap
FTM’s worth has grown by 230% in the past five 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 belongings 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 released 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 worth has seen 5 weeks of positive aspects in a row since Cronje’s letter to the Fantom Basis group.
The FTM/USD pair appears prepared to shut the week ending Feb. 5 with no less than a 25% revenue, helped by Cronje’s newest Twitter thread that offers 13 the explanation why Fantom shall be among the finest layer-1 blockchains in 2023.
Fantom worth technicals trace at correction forward
However, FTM’s ongoing rally dangers exhaustion as a consequence of a growing bearish divergence between its rising price and falling momentum.
On the daily chart, FTM/USD has formed higher highs since mid-January, while its relative strength index (RSI) has made decrease highs. As a rule of technical evaluation, such a discrepancy signifies that the upside momentum is slowing.
As well as, the RSI stays above 70, suggesting FTM is “overbought.“ It additionally hints about short-term bullish exhaustion and doable sideways or downward worth motion within the coming days.
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FTM dangers crashing towards $0.42, or 35% from present worth ranges, given the extent’s latest historical past as resistance. Furthermore, a detailed beneath $0.42 would convey FTM’s 200-day exponential transferring common (200-day EMA; the blue wave) at $0.38 into view as the following draw back goal.
General, Fantom maintains its bullish bias so long as it stays above its 200-day EMA and the 50-day EMA (the crimson wave).
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a choice.
