FTM → Fantom Drop to $0.50!? Or Rush to $3.50? Let's Answer.
FTM has shown immense strength during the crypto markets' bullish sentiment over the last 14 months. With a 611% increase from Fantoms' bear market low of $0.15 to the recent high of $1.21, does FTM have any more upside for us?
How do we trade this? 🤔
We're at a crucial point for the FTM price near a major resistance area peaking at $1.25. Two strong legs up from the support zone in a rough Measured Move with an RSI of 80.00 and above the Moving Average. The crypto market has given us more than the price action called for with Bitcoin hitting new all-time highs without touching lifetime support and before the halving. A long at this stage is not reasonable, at least not on the Daily or Weekly timeframes.
It's reasonable to wait for the price to fall toward the Weekly 30EMA and 200EMA between the $0.42 and $0.52 price range, this range will increase slightly as the pullback happens toward the $0.46 and $0.56 area. Therefore, it's ideal to target the $0.527 area for optimal Risk/Reward, setting a stop loss below the EMA ribbons at $0.285, the first take profit at 1:1 Risk/Reward ($0.77) selling half of the position and moving the stop loss up to the entry price, before the $0.97 resistance area. The second take profit should be set anywhere above the $1.25 resistance until a sell signal and confirmation are witnessed, but ideally, before the $2.00 psychological and minor resistance before the peak of the 2021 high.
💡 Trade Idea 💡
Long Entry: $0.527
🟥 Stop Loss: $0.285
✅ Take Profit #1: $0.77
✅ Take Profit #2: $1.98
⚖️ Risk/Reward Ratio: 1:6
🔑 Key Takeaways 🔑
1. Two legs up in a strong 611% bull run finding resistance at $1.21
2. Measured move played out
3. Bitcoin at all-time high resistance areas could impact crypto market sentiment
4. Gap between the current price and EMA ribbons
5. RSI at 80.00 and above the moving average. Supports a pullback.
💰 Trading Tip 💰
It's reasonable to take half profits at the first resistance target in a long trade or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worrying about losing money, which helps improve trading psychology and the equity in your account.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and Follow to learn more about:
1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology
How do we trade this? 🤔
We're at a crucial point for the FTM price near a major resistance area peaking at $1.25. Two strong legs up from the support zone in a rough Measured Move with an RSI of 80.00 and above the Moving Average. The crypto market has given us more than the price action called for with Bitcoin hitting new all-time highs without touching lifetime support and before the halving. A long at this stage is not reasonable, at least not on the Daily or Weekly timeframes.
It's reasonable to wait for the price to fall toward the Weekly 30EMA and 200EMA between the $0.42 and $0.52 price range, this range will increase slightly as the pullback happens toward the $0.46 and $0.56 area. Therefore, it's ideal to target the $0.527 area for optimal Risk/Reward, setting a stop loss below the EMA ribbons at $0.285, the first take profit at 1:1 Risk/Reward ($0.77) selling half of the position and moving the stop loss up to the entry price, before the $0.97 resistance area. The second take profit should be set anywhere above the $1.25 resistance until a sell signal and confirmation are witnessed, but ideally, before the $2.00 psychological and minor resistance before the peak of the 2021 high.
💡 Trade Idea 💡
Long Entry: $0.527
🟥 Stop Loss: $0.285
✅ Take Profit #1: $0.77
✅ Take Profit #2: $1.98
⚖️ Risk/Reward Ratio: 1:6
🔑 Key Takeaways 🔑
1. Two legs up in a strong 611% bull run finding resistance at $1.21
2. Measured move played out
3. Bitcoin at all-time high resistance areas could impact crypto market sentiment
4. Gap between the current price and EMA ribbons
5. RSI at 80.00 and above the moving average. Supports a pullback.
💰 Trading Tip 💰
It's reasonable to take half profits at the first resistance target in a long trade or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worrying about losing money, which helps improve trading psychology and the equity in your account.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and Follow to learn more about:
1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology
-Joe Dean
Trader Engineering Course (Coming Soon!)
TraderEngineering.com
Trader Engineering Course (Coming Soon!)
TraderEngineering.com
FTM fell to the Daily 200EMA price area as expected in my analysis, completing the 2-legged pullback which will likely lead into a trading range. If you set a stop buy order in the $0.52 area, I think that was wise per my analysis. I do think we're going to spend some time in the $0.50 area or even a little lower for awhile, so I will be adding to my position as the price carries on in this range.
We're in Bitcoin halving season after three pushes up to the 2021 high around $70,000. I expect Bitcoin and the rest of the hot burning crypto market to pullback and cool off for weeks or even months depending on how the next few weekly candles play out.
A new FTM analysis will be coming soon!