The market structure was bullish on higher time frames. Establishing a range could offer a period of consolidation.
In January, Fantom rallied from $0.16, and it hit $0.65 in early February. It represented a 230% bullish move, and at the time of writing, FTM was trading near the support zone at $0.43.
It seemed unlikely that such a strong move could happen over the next month or two.
Markets generally need time to consolidate before such a move, up or down. Fantom was in one of those consolidation phases. The asset showed signs of forming a range, which traders can use in the coming weeks.
Range Formation Meant Traders May Look to Bid FTM at Lows
The range extended from $0.43 to $0.6, with the midpoint at $0.515. This range was less than a month old. In addition, the extremes of the range have only been tested twice each. The fact that the mid-range mark was held as support and resistance suggested that the range was viable.
A bullish order block was detected at the bottom of a range. From this level, FTM saw a violent move north to reach $0.6 in mid-February. At the time of writing, the price was testing the same region once again.
The RSI slid below the neutral 50 mark, to highlight bearish momentum. It underscored the possibility that a downtrend could start. However, the OBV has been increasing in recent weeks. It showed constant buying pressure despite the range formation.
If the OBV continues to rise in the coming weeks, a break above $0.6 could push towards $0.85 and $1.1. Until then, buying and selling near the ends of the range could be a profitable option for Fantom traders.
A Rise in Idle Circulation Marked Previous Local High After Headlines Posted Gains
The 30-day MVRV ratio fell into negative territory. It rose to 3-month highs at the end of January, but it has tumbled ever since. This indicated that holders took profit and reinforced the selling pressure seen in recent weeks. Although not strong enough to start a long-term downtrend, it was enough to stop the explosive rally.
The 90-day idle circulation experienced a surge on February 12, and another on February 18. The recent spike also marked a local top for FTM.
Therefore, this was another metric that traders can keep an eye on to warn of big sell-offs. Meanwhile, development activity was steady and continued without any correlation to price action, which should encourage long-term buyers.
To conclude, according to Ambcrypto.com, traders can look to buy FTM at $0.16. Furthermore, the $0.50-$1.50 level can be an area where demand can step in. If the RSI goes above neutral 50, and the CMF mounts over the zero line, buyers can look to get in.
By Audy Castaneda
