YEREVAN (CoinChapter.com) – Fantom Crypto Network’s FTM coin price stood at $0.39 on Jan 24, after a whopping 100% rally. However, Fantom bulls might have more to celebrate as FTM token eyes an additional 20% based on a technical setup dubbed the ‘falling wedge.’
FTM coin in a bullish reversal setup
In short, the falling wedge entails two converging trendlines with a negative slope. They enclose the price action, connecting the swing highs and lows and gradually the amplitude of the fluctuations, driving the FTM price lower.
However, the falling wedge is a bullish reversal pattern, and it forecasts an upside move after the asset breaks above the setup’s resistance. The uptrend in question typically equals the maximal wedge height. FTM token broke above the upper trendline on Jan 8, confirming the formation.
Additionally, in the case of the FTM coin, the target price stands at $0.48, or 20% higher than the current FTM price. However, some bearish cues could put off the price appreciation.
Bearish cues for FTM
As shown in the chart above, the FTM coin arrived at a key resistance at $0.41 and retested it on Jan 24. Moreover, the declining trading volumes in the previous days show the traders’ willingness to secure their recent gains rather than increasing buying pressure.
If FTM crypto drops in the coming sessions, the next available support might come from the former resistance at $0.35, which will still keep the overall prognosis bullish. The ‘overbought’ relative strength index (RSI; purple graph at the bottom) also testified to a short-term stall.
Also read: Quant (QNT) Price Reaches 2-Month High, But Bull Run Likely To Fizzle Out.
In detail, the RSI is a gouge for best market entry and exit points. When the oscillator charts above 70, the asset trades at an ‘overbought’ price compared to the average, which prompts some investors to pull their bets and secure the profits.
Fantom partners with Axelar
Meanwhile, fundamental developments might favor the FTM coin bulls. As announced on Jan 24, Fantom partnered with interchain communication platform Axelar.
Axelar provides interchain communication for Fantom & its broader Web3 ecosystem! With @Axelarcore, Fantom users & builders benefit from secure, decentralized interoperability across 30+ chains.
read the tweet.
The blog post also clarified that Axelar’s integration with Fantom provides a “seamless user experience” through the use of General Message Passing (GMP). The latter lets developers call contracts on any chain connected to Axelar.
dApps and their users can send and receive any payload across chains, including data and function calls. For example, developers can build DeFi apps that use NFTs minted on another chain as collateral, without having to wrap and move the NFT across chains.
read the FTM crypto announcement.
Also read: Bitcoin price over $22K – bull market cycle or dead cat bounce?
All the factors mentioned above might push the FTM coin higher by another 20% despite a possible halt in the upcoming sessions. As of Jan 24, the bullish target for the FTM token stands at $0.48, and the setback could reach $0.35, maintaining the overall bullish bias.
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