Fantom sees largest retail inflows, anticipates 30% breakout

• Fantom price finds buyers near the 2022 lows.
• A new upswing should be anticipated if the maxim, ‘volume precedes price,’ is true.
• Downside risks remain a very real threat.

Fantom price action, like the majority of the cryptocurrency market, continues to face strong selling pressure and large drawdowns from its recent all-time highs. However, a change in direction and the overall trend may soon occur.

Fantom price is positioned for a strong bullish correction

Fantom price has a very interesting-looking 2022 Volume Profile. Before this week, the 2022 Volume Point of Control existed at $1.367. However, since the beginning of May, the Volume Point of Control has shifted down to the present trading range at $0.777. What makes this an important development is the time it has taken for the new Volume Point of Control to form.

The prior Volume Point of Control at $1.367 formed over twenty-one trading days. The new Volume Point of Control formed over just six trading days. That means in less than one-third of the time, more trading occurred at the $0.777 value area than at $1.367. Additionally, the average volume over the past seven days has been the highest in 2022. The increase in volume is a major warning sign for all participants: Fantom price could be heading higher.

IN conjunction with the volume inflows is an important time cycle in Gann analysis. Gann analysis shows a high probability that a new and extended expansion move is imminent from a time cycle perspective.

FTM/USD Daily Ichimoku Kinko Hyo Chart

Fantom price is now on day 190 from its all-time high. This is important because in Gann analysis, the 180 -day Gann Cycle of the Inner Year (180 days to 198 days) is the second most powerful in the 360-day Inner Year Cycle. Gann wrote that if an instrument has been trending over 180 days, then a reversal in the trend is likely to occur.

In the event of any major rally of Fanrom price, resistance will likely be found at the $1.20 value area before any further upside movement would occur. If bears successfully push FTM to new 2022 lows, then the $0.50 value area is the next likely low.

 

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