The Fantom price rally will encounter strong overhead resistance as it approaches $ 1.36 and failure to prevail could trigger a return to $ 0.86. However, above $ 1.36 and Fantom (FTM) will be targeting $ 2.00. After jumping 35% since Wednesday, it’s hardly surprising that FTM is facing resistance. The two-day rebound made up most of the losses of the past two days, gaining around $ 700 million in market cap. The rally raises Fantom’s value to around $ 3.1 billion, ranking it 46th in cryptocurrency, ahead of Neo (NEO). This is quite a feat considering its market cap was $ 400 million in July and just $ 43 million at the beginning of the year.
Fantom price rocketed from the July low of $ 0.15. On September 9th, the in-house FTM token was 1180% richer and changed hands at $ 1.93. However, the trend has been lower since then. As a result, Fantom had tracked 50% of the move by Tuesday before buyers showed up with a dip at $ 0.86, bringing the price up to $ 1.28. Even so, the downtrend remains dominant until Fantom climbs above $ 1.36.
FTM price analysis
The 4-hour chart shows a significant support band of $ 1.00 to $ 0.86, marked by Tuesday’s lows and several highs from the beginning of the month. The support is reinforced by the lower edge of a descending trend channel. Against the support stands the top of the trend channel at $ 1.30 and a descending trendline from the all-time high at $ 1.36.
As long as Fantom price stays below $ 1.36 it will remain in a downtrend. Hence, a logical conclusion is a return to the support band below the market. However, if the FTM rises above $ 1.36 then bullish momentum should target $ 150 and possibly extend towards the ATH.