• Fed Chair Jerome Powell’s inflationary comments led to a drop in the price of Fantom [FTM], which is down 8.5% over the last 24 hours.
• On the lower timeframe chart (4 hours), FTM has formed a double-bottom pattern with 24% gains after retesting the overhead resistance, however, there has been a 35% correction since then.
• Short-term bulls could seek new buying opportunities at $0.3944 and $0.4265 while short-sellers could target its lower boundary at $0.3552 if FTM fails to close above the channel’s mid-level.
Fed Likely To Increase Rate Hikes To Tame Inflation
Following remarks from Federal Reserve Chair Jerome Powell on March 7th, Fantom [FTM] dropped below $0.42 as investors priced in the inflationary pressure being higher than expected and pointed to potential aggressive rate hikes. This drop was accompanied by Bitcoin [BTC]’s fall below $22K and sustained sell pressure in the altcoin market, resulting in FTM dropping 8.5% over the past 24 hours according to CoinMarketCap.
Price Action of FTM
On a lower timeframe chart (4 hour) analysis indicates that FTM rallied before a price rejection claimed all gains previously made – forming a double-bottom pattern with 24% gains after retesting overhead resistance of $0.5951 before correcting 35%. Currently FTM is oscillating between highs and lows of descending channel (orange) with range boundaries of $0.3944 and $0.4265 respectively – providing short term bulls with opportunity for new buying while providing short sellers with potential targets of channel mid level or lower boundary ($0.3857 – $0.3552). If prices fail to close above said mid level an extended drop could take prices below channel towards area of support at around $0 0 3162 . Analysis also showed limited buying pressure as seen by On Balance Volume (OBV) fluctuations and Relative Strength Index (RSI) staying below 50 mark over same period as FTM traded within range mentioned earlier .
Macroeconomic Headwinds Sustaining Price Action
Prevailing macroeconomic headwinds are likely sustaining current price action within this range due to instability in demand for derivatives seen from fluctuation in Funding Rate according to Santiment along side negative MVRV reading indicating lack of investor profitability .
In conclusion investors should consider current macroeconomic conditions when making their trading decisions as well taking into account technical analysis such as Support/Resistance levels , Double Bottom patterns etc when looking for entry/exit points into market . It is also worth noting that investing carries risk so always make sure you understand what you are getting yourself into before trading .
The information presented does not constitute financial, investment, trading or other types of advice and is solely the writer’s opinion