Fantom price today is $0,172048 USD, -12,44% in the last 24h, with a 24-hour trading volume of $20.414.531 USD. On the 4h chart we can see how the assets is currently in a bearish trend, with the trend line identifying lower lows (black line) and lower highs (yellow line), and a MACD below the trendline. The volatility is decreasing, as shown by the Keltner channel, underlying we are in the distribution phase of the market. A descending triangle pattern has been spotted, with the breakout just happened at $ 0.18323 (still no vol. confirmation), therefore we can expect the price to fall to the next support level, this being $ 0.12 -0.1558 area. RSI index is currently at 28, indicating the asset is strongly overbought, therefore a quick price rise is expected: retest. For this reason I expect the price to retest the broken level of $ 0.18323, before continuing with the downtrend up to $ 0.12 -0.15 area. This can be a good occasion for daily traders ( +18%) for shorting.
Personally, I expect the asset to reach the first short target and later I believe a reversal bullish trend will occur. The coin has very strong fundamentals, is almost overbought also on daily chart, it’s currently very under evaluated compared to the ATH, therefore I expect its price to rise significantly in the long trend, up to 10x potential. For this reason I would personally short up to the first target and later enter a long position at the same price.
On the 4h chart we can see how in the last days the price has continuously hit the lower band of the Keltner channels with the EMA acting as a resistance, but not the upper ones.
Today’s price broke the lower Keltner level and this can be an important signal for the bullish reversal: historically in fact, every time the lower level of the channel was broken, an immediate pullback to the EMA occurred, as pointed in the graph by the arrows. The fact that the volatility is decreasing and the channel is becoming thinner and thinner may imply that the price reversal won’t be so quick. In order to have an idea of when the reversal could occur I use Fibonacci time zones. This acted pretty accurately in predicting historical areas where a swing high, low, or reversal occurred, therefore the 55 vertical line may indicate the end of the bearish pattern, which is believed to be in mid August.
Exactly as predicted, on 19th July price hitted short entry price of $0.18 and moved to the downside reaching the first short target $0.1558 the next day. As expected, it was an immediate short opportunity: +14% !!
In my previous analysis I have also shared my personal trading strategy for this asset: short up to first target at $ 0.15 level and then entry long position at same price .
"Personally, I expect the asset to reach the first short target and later I believe a reversal bullish trend will occur. The coin has very strong fundamentals, is almost overbought also on daily chart , it’s currently very under evaluated compared to the ATH , therefore I expect its price to rise significantly in the long trend, up to 10x potential. For this reason I would personally short up to the first target and later enter a long position at the same price."
TODAY, 26th JULY, we can see how not only the short position got filled (+14% profit), but also 3/4 Long targets have been reached (+ 54% PROFITS )!
Stay tunned for more technical analysis ideas!
Not financial advise
Trade closed: target reached
⋅
On 6th August all LONG targets have been reached! +80% profits for spot trading!
I am sorry but there has been an issue with the translation from italian to english, therefore this same idea was published in the two different languages (therefore on two different version of this platform) in two different days. The first one was published on the italian version on 19th of July (the same day short entry price got filled), therefore italian followers could read the short and idea on time; unfortunatelly the english version was published two days later.
I am sorry for this incovenience.