Chainlink (LINK) and Fantom (FTM) hit the top of the longer-term watchlists with solid technical setups on the daily chart.
Are these setups strong enough to draw in buyers or will recent selling pressure continue?
The last time we looked at Chainlink at the end of October, LINK/USD had just stabilized after a quick drop from $34 to $28. This was a strong broken resistance area that we thought could draw in fundamental traders, as well as technical traders into the broad uptrend.
Apparently, that area did attract enough buyers for LINK/USD to take off and make new six month highs around the $38 handle, before dropping with the rest of the broad crypto space this week.
The market is back to retesting that major area of interest around $28, and it looks like the selling pressure is fading here.
As we can see in the daily chart above, the Stochastic indicator is nearing oversold levels, and in the past, this correlates with bottoms on the daily time frame. Will we see that behavior once again?
Overall, the crypto market is still in an overall uptrend so the odds are likely that this area will draw in enough technical buyers to hold the line. As far as fundamental players, Chainlink is still the top dog in the crypto oracle space, and being that protocols all need secure and reliable price feed services like what Chainlink provides, this asset will likely continue to be attractive to longer-term players on dips if the broad crypto space stays bullish.
Fantom (FTM) is one of the new kids on the Decentralized Finance scene, and had an awesome runup over the past few months before topping out just under the $3.50 handle on FTM/USD.
The last time we checked out the market on FTM/USD, we saw a profit taking pullback was in the works, and that bounces in the short-term downtrend were likely selling opportunities. We also said that a retest of the $2.50 handle was the area to watch as a potential support area for longer-term players.
While, $2.50 did hold as support over the last few weeks, it did finally break this week as the broad crypto space seems to be taking some profits after many top coins traded to new all-time highs.
This has brought FTM/USD lower to nearly retest the $2.00, which in the past has been both a major resistance and support area.
Will this major area of interest draw in buying support once again? It’s really tough to tell right now with no apparent bullish catalysts ahead, so we’re staying on the sidelines with this one, waiting for either bullish reversal candles to develop around $2.00 for a possible long technical play or for a sustained break below $2.00 before considering a short-term short position to play the downside momentum.
In either case, the potential return-on-risk looks favorable when considering a tight stop on the other side of $2.00 and setting a target of at least one or two times the weekly ATR (currently around $0.45).
What do you all think? Are LINK or FTM on your radars for a longer-term position?