FTM → Fantom Blasts to $0.43 Weekly 200EMA! Will We Reverse!?
Fantom had an excellent breakout of the previous resistance zones at $0.34 and $0.37 per my previous analysis. If you longed the suggested trade, you achieved a 1:3 Risk/Reward Ratio! What are the next moves now that we've hit the Weekly 200EMA?
How do we trade this? 🤔
Fantom is red hot to the upside making contact with the Weekly 200EMA, an expected resistance area. The Weekly candle closes in 1 day and 1 Hour, we need to see where the candle closes and what the next Daily candles show us. The RSI is at 70.00, most Crypto tokens are running hot and have hit some major resistance levels with their RSIs high as well. That includes Bitcoin, Ethereum, Cardano, the list goes on.
I think we're in for a decent retrace to let the market cool off. This could be the first bull leg up in the next bull run, signaling that the macro trend on the market is committing to the upside. However, I believe Bitcoin needs to take one more dip to $25,000 before new all-time highs, and the rest of the Crypto market will likely be dragged down with it.
Look for a pull back to the Weekly 30EMA and a strong bull signal and confirmation of Support. If we see a good Weekly candle closing on or near its high after a signal, a long position is reasonable. Now this long could be played many ways between the Daily and Weekly timeframe, I'm suggesting the following as a conservative measure and assuming the Alt market doesn't see previous all-time highs.
Long the $0.325 area, set a stop loss below the (so far) reliable $0.165 Weekly Support, and a few Take Profit areas. Take 1:1 Risk/Reward with half of your position at $0.50 and move your stop up to the entry price, then 1:3 R/R at $0.85 with half of your remaining position, then swing the remainder to 1:7 R/R. A reasonable area at $1.55 (2021 Left and Right Shoulders), but I wouldn't argue against letting it ride longer if the conditions are correct. It's too far out to speculate on the price action.
This is a multi-month trade that could go into 2025. More analysis will be coming for the lower timeframes!
💡 Trade Idea 💡
Long Entry: $0.325
🟥 Stop Loss: $0.150
✅ Take Profit #1: $0.500
✅ Take Profit #2: $0.850
✅ Take Profit #3: $1.55
⚖️ Risk/Reward Ratio: 1:7
🔑 Key Takeaways 🔑
1. Bullish Since Weekly Support - October 2023, Bias to Long.
2. Currently Touching Weekly 200EMA Resistance. Wait for Candle Close.
3. Wait for Weekly Candle to Close. If below 200EMA, expect Pullback.
4. RSI around 70.00, far above Moving Average. Supports Pullback.
5. Look for 1:3 Risk/Reward Opportunity. Swing Partial Position.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and comment if you found this analysis useful!
How do we trade this? 🤔
Fantom is red hot to the upside making contact with the Weekly 200EMA, an expected resistance area. The Weekly candle closes in 1 day and 1 Hour, we need to see where the candle closes and what the next Daily candles show us. The RSI is at 70.00, most Crypto tokens are running hot and have hit some major resistance levels with their RSIs high as well. That includes Bitcoin, Ethereum, Cardano, the list goes on.
I think we're in for a decent retrace to let the market cool off. This could be the first bull leg up in the next bull run, signaling that the macro trend on the market is committing to the upside. However, I believe Bitcoin needs to take one more dip to $25,000 before new all-time highs, and the rest of the Crypto market will likely be dragged down with it.
Look for a pull back to the Weekly 30EMA and a strong bull signal and confirmation of Support. If we see a good Weekly candle closing on or near its high after a signal, a long position is reasonable. Now this long could be played many ways between the Daily and Weekly timeframe, I'm suggesting the following as a conservative measure and assuming the Alt market doesn't see previous all-time highs.
Long the $0.325 area, set a stop loss below the (so far) reliable $0.165 Weekly Support, and a few Take Profit areas. Take 1:1 Risk/Reward with half of your position at $0.50 and move your stop up to the entry price, then 1:3 R/R at $0.85 with half of your remaining position, then swing the remainder to 1:7 R/R. A reasonable area at $1.55 (2021 Left and Right Shoulders), but I wouldn't argue against letting it ride longer if the conditions are correct. It's too far out to speculate on the price action.
This is a multi-month trade that could go into 2025. More analysis will be coming for the lower timeframes!
💡 Trade Idea 💡
Long Entry: $0.325
🟥 Stop Loss: $0.150
✅ Take Profit #1: $0.500
✅ Take Profit #2: $0.850
✅ Take Profit #3: $1.55
⚖️ Risk/Reward Ratio: 1:7
🔑 Key Takeaways 🔑
1. Bullish Since Weekly Support - October 2023, Bias to Long.
2. Currently Touching Weekly 200EMA Resistance. Wait for Candle Close.
3. Wait for Weekly Candle to Close. If below 200EMA, expect Pullback.
4. RSI around 70.00, far above Moving Average. Supports Pullback.
5. Look for 1:3 Risk/Reward Opportunity. Swing Partial Position.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and comment if you found this analysis useful!
-Joe Dean
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