Fantom (FTM): Bullish Setup with Strong Support Levels!

27 mag

Looking at Fantom on the daily timeframe, we see a promising setup following the completion of Waves 3 and 4. Wave 4 ended around $0.567, and since then, we have observed a consistent formation of higher lows. This pattern suggests a continuation of the upward trend.

The recent rise has left behind a breakout gap. Our plan is to see this gap touched or closed, and subsequently, we aim to use the underlying demand zone for Dollar-Cost Averaging (DCA) if further pullbacks occur. Within this area, we have two significant supports: the Point of Control (POC) and the High-Volume Node Edge. These levels should provide enough support to prevent the price from falling below this range.

Our target is set at a minimum of $1.22, though it could go higher, considering this is likely Wave 5. This target aligns with the expected continuation of the bullish trend as indicated by the Elliott Wave theory.



It is relatively easy to see that there are many liquidation levels above the current price for FTM. Significant liquidations have already been taken out, particularly just shortly after the ETF approval when many overleveraged positions were liquidated. Currently, there aren't many liquidation levels below the current price.

Therefore, we believe this might be a good time to dip again to clear out any remaining liquidation levels. After that, we expect to absorb the remaining short positions and push upwards. There is significant room to move higher, reaching our first target and potentially taking out more liquidations along the way.



Focusing on Fantom (FTM) on the quarterly VWAP chart, the 2024 Q1 VWAP has acted as a significant resistance level, respected four times. This consistent resistance often becomes a powerful support once broken, marking the start of a bullish phase. We anticipate the 2024 Q1 VWAP will transition from resistance to support, signaling strength and potential upward momentum. Additionally, the 2024 Q2 VWAP is providing strong support, reinforcing our bullish outlook and underpinning the price action.

With the combined support from the 2024 Q2 VWAP and the potential flip of the 2024 Q1 VWAP, Fantom is poised to gain momentum. We expect this to drive the price upward, leading to a retest of the 2024 Q1 VWAP soon. In summary, the interaction between these VWAP levels is pivotal. The 2024 Q1 VWAP is likely to become new support, bolstered by the 2024 Q2 VWAP. This setup suggests Fantom could move higher in the near future, retesting and possibly surpassing previous resistance levels.



We also need to consider the monthly VWAP chart for Fantom (FTM). Resistance was encountered between $0.915 and $0.925, defined by the Previous Monthly VAH and the March VWAP.

Currently, the May VWAP is holding, along with the Previous Monthly VWAP. However, we might fall below this level, where the Previous Monthly VAHL and May VAL should provide support. This alignment offers solid support and aligns with market structure and Elliott Wave principles.

Maintaining these levels is crucial for sustaining the bullish outlook and allowing the market to stabilize before moving higher. Holding the May VWAP and the Previous Monthly VWAP shows Fantom's resilience, potentially facilitating upward movement. If a dip occurs, support at the Previous Monthly VAL and May VAL should stabilize the price and provide a foundation for the next bullish phase.