Fantom price presents buying opportunity before FTM returns to $1
|- Fantom price lost over 50% of its value in April.
- New 2022 lows established.
- Significant buying volume may hint at a recovery.
Fantom price action has few peers regarding the massive losses it sustained in April. However, the breadth of the selling has yielded some extreme oversold conditions that point to a likely very powerful mean reversion trade setup.
Fantom price may bounce back to $1
Fantom price action in April was a slaughter fest. In just thirty days, Fantom fell from the April 1 open of $1.43 to the April 30 close at $0.6847 - a loss of 52%. Since then, FTM has had a marginal recovery to $0.78.
FTM bounced right off the 61.8% Fibonacci retracement at $0.65 on April 30 and has maintained most of those gains into today’s session. Additionally, a substantial amount of buying and selling has occurred between $0.73 and $0.80.
In just four trading days, Fantom price has created a high volume node roughly one-fourth the size of the 2022 Volume Point Of Control at $2.07. In addition, the 2022 Volume Point Of Control developed over a seventh-day period. In other words, the volume traded over the four trading days relative to the 2022 VPOC is substantial.
The Composite Index and Optex Bands oscillators show a strong probability of an incoming price spike. The Composite Index is coming off of five-month lows and has crossed above its moving averages. At the same time, the Optex Bands oscillator hit a new oversold extreme by making a new all-time low.
FTM/USDT Daily Ichimoku Kinko Hyo Chart
The first target for bulls is the $0.90 value area where the daily Tenkan-Sen and 50% Fibonacci retracement exist. Beyond that, the next major resistance level to retest is the daily Kijun-Sen at the critical $1 level.
Downside risks, however, remain a concern. It is equally likely that Fantom price has yet to fully retrace its 2021 rise. A standard 50% logarithmic retracement of the 2021 spike wouldn’t be complete until FTM hit $0.24.
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