Is Fantom's Bullish Run Sustainable?

Fantom (FTM) exhibits a bullish market structure on the 12-hour chart, with a strong uptrend supported by high trading volume and a positive OBV trend. Despite a recent rejection at $1.22, FTM remains above its higher low of $0.7197, maintaining a bullish outlook. A drop below $0.9 this week appears unlikely, while a retest of the $0.83-$0.915 zone could present a buying opportunity.

Is Fantom's Bullish Outlook Here to Stay?

Fantom's price action on the 12-hour chart paints a rosy picture. The cryptocurrency has remained resilient amidst Bitcoin's recent dip, surging nearly 17% over the past week. However, there are a few wrinkles that could potentially disrupt this bullish trajectory.

Is a Retracement on the Horizon?

Despite the recent rejection at $1.22, a drop below $0.9 this week appears unlikely. Fantom's higher low is currently sitting at $0.7197, and a breach of this level would signal a bearish shift.

Is the Momentum Fading?

While the market structure remains bullish, there are signs of a potential retracement. The Relative Strength Index (RSI) recently made a bearish divergence with the price, although this divergence has since dissipated.

Are Buyers Still in Control?

The On Balance Volume (OBV) has been trending strongly upward, indicating the dominance of buyers. Trading volume has also been high, suggesting that the momentum could continue.

Where Are the Buying Opportunities?

If prices do dip, a retest of the $0.83-$0.915 zone could present a buying opportunity for swing traders.

What's the Long-Term Outlook?

To the north, the $1.18-$1.2 area could see a bearish reaction from Fantom. On the other hand, the $0.97-$1.01 range is expected to provide support. Additional support levels include $0.89 and $0.8.

Is Fantom a Worthy Investment?

Fantom's positive social media sentiment and strong on-chain metrics suggest that it may be a worthwhile investment. However, investors should proceed with caution and keep an eye on the potential for a retracement.

Conclusion

Fantom's bullish outlook remains intact, but there are a few potential headwinds to consider. A retracement is possible, but buyers appear to be in control for the time being. Investors should monitor the price action closely and consider the potential buying opportunities that may arise.