Over the past month, Fantom (FTM) values have surged with the token surging by 50%. Recent statistics, however, indicate a possible slowing down in this increasing tendency, which calls into doubt FTM’s price momentum’s sustainability.
Per CoinGecko data at press time, FTM trades at $0.4846. The token has seen a daily trading volume of $286,462,423, accompanied by a slight decrease of 0.12% in the last day. Despite this setback, FTM has maintained a strong 25.11% price rise over the week.
Crypto analysts and traders have taken note of FTM’s price action, sharing their perceptions on the token’s short-term prospects. Some believe the current price levels may represent a potential bull trap, while others see further room for growth.
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Is FTM’s Price Surge a Bull Trap?
Crypto analyst @CryptoJobs3 shared insights on X suggesting a cautious approach to FTM’s current price levels. The analyst pointed out that FTM is currently trading at a resistance level between $0.500 and $0.5050, with a bearish divergence visible on the hourly Relative Strength Index.
@CryptoJobs3 noted the possibility of a price correction, with potential support levels around $0.470 to $0.4650. However, the analyst also highlighted a bullish outlook on the weekly timeframe, suggesting a potential mid-term target range of $0.5800 to $0.600.
Given the current market conditions, the analyst advised against taking long positions at current levels, recommending instead to wait for potential dips before entering the market.
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Bullish Chart Patterns
Contradicting the cautious sentiment, another prominent analyst, @Nebraskangooner, identified a potentially bullish chart pattern for FTM. On the weekly timeframe, the analyst also pointed out a positive view suggesting a possible mid-term goal range of $0.5800 to $0.600.
The expert cautioned against initiating long positions at present levels given the state of the market. Besides, ihe advised waiting for possible declines before entering the market.
In technical analysis, an inverted head and shoulders pattern is sometimes regarded as a bullish reversal indicator. Should FTM surpass the neckline of this formation, it may set off a fresh wave of buying enthusiasm.
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