Fantom Price (FTM) risks a reversal in February due to the divergence between price and momentum in recent weeks.
FTM price increased by 230% after Cronje 2023 roadmap
The price of FTM has increased by 230% in the last five weeks, trading at $0.61 on February 5. The rally was part of a broader crypto market recovery but outpaced the top crypto assets thanks to the hype created by Andre Cronje.
Cronje is the founder and architect of the Fantom layer-1 blockchain. On December 26, 2022, the developers issued a letter discussing the goals and priorities for the Fantom ecosystem in 2023, including the intention that decentralized application developers get 15% of the network’s revenue.
The FTM price has gained five consecutive weeks since Cronje’s letter to the Fantom Foundation team.
The FTM/USD pair looks poised to close the week ending February 5 with at least a 25% gain, aided by Cronje’s latest Twitter thread which gives 13 reasons why Fantom will be one of the best layer-1 blockchains in 2023.
Fantom price technicals indicate a correction ahead
However, the ongoing FTM rally is experiencing fatigue due to the bearish divergence between rising prices and declining momentum.
On the daily chart, FTM/USD has formed the highest since mid-January, at that time relative strength index (RSI) has made a lower high. As a rule of technical analysis, the divergence means that the momentum is up or down.
Additionally, the RSI remains above 70, suggesting FTM is “overbought.
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FTM risk fell to $0.42, or 35% of the current price level, as the recent history of the level is resistance. Additionally, a close below $0.42 would bring the 200-day FTM exponential moving average (200-day EMA; blue wave) at $0.38 as the next downside target.
Overall, Fantom maintains a bullish bias as long as it remains above the 200-day EMA and 50-day EMA (red wave).
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.