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The price of Fantom (FTM) risks pulling back in February due to a growing divergence between its price and momentum in recent weeks.
FTM price rallies 230% after Cronje’s 2023 roadmap
FTM’s price has grown by 230% in the past five weeks, trading at $0.61 on Feb. 5. the rally came in the context of a broader recovery of the crypto market, but outperformed most of the top crypto assets because of the media hype created by andre cronje.
Cronje is the co-founder and developer of Fantom's blockchain layer-1. On Dec. 26, 2022, the developer released a letter discussing the goals and priorities for the Fantom ecosystem in 2023, including his intention to allow decentralized app developers to earn 15% of the network’s revenue.
Ftm price has seen five consecutive weeks of earnings since cronje wrote to the fantom foundation team.
The FTM/USD pair looks ready to close the week ending Feb. 5 with at least a 25% profit, helped by Cronje’s latest Twitter thread that gives 13 reasons why Fantom will be one of the best layer-1 blockchains in 2023.
Fantom price technicals hint at correction ahead
Nevertheless, FTM’s ongoing rally risks exhaustion due to a growing bearish divergence between its rising price and falling momentum.
On the daily chart, FTM/USD has formed higher highs since mid-January, while its relative strength index (RSI) has made lower highs. As a general rule of engineering analysis, such a gap means that the upward trend slows down.
Moreover, the RSI remains greater than 70, suggesting FTM is "overbought." It also suggests an uptrend in the near term and a possible decline in prices in the next few days.
Related: Crypto quick hits: 8 simple steps to multiple weekly winners
MTF may fall to $0.42, or 35 per cent from current price levels, given the recent history of this level as resistance. In addition, a variance of less than $0.42 would increase the 200-day MTF exponential moving average (200-day EMA; blue wave) to $0.38 as the next lower target.
Overall, Fantom remains bullish as long as it remains above its EMA of 200 days and the EMA of 50 days (the red wave).
There are no investment tips or recommendations in this article. Every investment and negotiation movement involves risk, and readers should conduct their own research when deciding.
