Phantom (FTM) price is approaching the resistance line of a descending wedge. Due to the bullish readings from the weekly and daily time frames, a breakout from the wedge is the most likely scenario.
Phantom price has declined since reaching the October 2021 high of $3.48. A drop in November 2022 results in a minimum price of $0.16. This was the lowest price in almost 500 days.
Initially, this downside move led to a break above the $0.20 horizontal support area, which it held since the beginning of 2021. However, the breakdown turned out to be a divergence (red circle) as the phantom price quickly reclaimed the area. Such divergence is considered a bullish move as the bears did not have enough strength to push the price down. As a result, price action is bullish from the weekly time frame.
The bullish signals don’t stop here. The weekly RSI has generated a significant amount of bullish divergence (green line) and is moving towards 50.
As a result, Phantom price estimates for January and beyond are looking bullish. In this case, the main resistance area will be at the average price of $0.40. Conversely, a weekly close below the $0.20 support area would invalidate this bullish hypothesis.
Fantasy Price Prediction for January: Breakout Could Accelerate Upward Momentum
Technical analysis from the daily time frame is in line with the potential for a breakout. This is mainly because the FTM price is trading inside a descending wedge, which is considered a bullish pattern. Moreover, the price is trading above the middle of the wedge and moving towards its resistance line.
Next, the daily RSI has crossed above 50 (green icon), another sign of a bullish trend. Consequently, a breakout from the wedge is the most likely scenario. If it happens, Phantom price could continue to move higher towards the $0.40 long-term resistance area.
As outlined earlier, a drop below $0.20 would invalidate this bullish FTM price analysis. In that case, the support line of the wedge near $0.15 would be expected to provide support.
To conclude, the most likely FTM price forecast is a breakout from the wedge and a move towards the $0.40 resistance area on the daily time frame. A close below $0.20 would invalidate this bullish hypothesis.
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