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Buying or Shorting Fantom and Waves? Technical support & resistance

June 20, 2022 14:15
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Fantom,

Today, Short Selling will talk about the latest important news connected with Fantom (FTM) and Waves (WAVES) and where the price of these two cryptocurrencies could move in the upcoming period.

The prices of most public cryptocurrencies have collapsed in a relatively short period; many analysts said that the market will continue to fall, while short-term traders believe that it's a good idea to sell their assets now and get whatever money they can.

Federal Reserve Chairman Jerome Powell said this week that the U.S. government would begin taking a more aggressive stance to fight inflation by raising interest rates by 75 basis points and investors are worried that an aggressive interest rate could tip the economy into recession. Risk-on assets tend to suffer in such conditions, and we would probably see new lows for the cryptocurrency market in the weeks ahead.

Since mid-November, the cryptocurrency market has lost approximately half its value, and all eyes are now watching to see whether Bitcoin will be able to hold above the important support level that stands at $20,000. American investor Jeffrey Gundlach recently told CNBC that he would not be surprised if Bitcoin were to plunge to the $10,000 level. Jeffrey Gundlach said:

“When Bitcoin fell below $30,000, it looked like it would trade down to $20,000 fairly quickly, and it did. Now it looks like another breakdown could be imminent, and the trend in crypto is clearly not positive. So I'm not bullish at $20,000 or $21,000 on Bitcoin. I wouldn't be surprised at all if it went to $10,000.”

Investor Peter Brandt said that Bitcoin bulls would have to wait several years before seeing another record high, and for now, the consensus appears to be that the cryptocurrency market will drop much lower before reaching the bottom of the ongoing bear market.

After hitting recent highs above $1.50 in April 2022, Fantom (FTM) has encountered losses of more than 80%. The price has stabilized now above $0.20 support, but a break below this level would indicate that Fantom (FTM) could probably test the $0.10 support. Waves also remains under pressure, its price has weakened from recent highs above $10, and for now, the risk of further decline still persists.

Bearish traders who are already holding a position in Fantom or Waves can feel confident the downtrend will continue unless the cryptocurrency makes a higher high. The price of these two cryptocurrencies is also in correlation with Bitcoin, and if the price of Bitcoin drops below $20000 support, we can see new lows for Fantom (FTM) and Waves (WAVES).

Technical analysis of Fantom (FTM)
Fantom is an open-source smart contract platform for digital assets and dApps, and the main characteristic of this platform are speed, security, and scalability. Fantom (FTM) has collapsed from the recent high above $1.5, and for now, everything indicates that we could see even lower prices in the days ahead.

If the price drops below $0.20, which represents the current support level, the next target could be located around $0.15 or even below. Fantom (FTM) remains under pressure; still,  if the price advances above $0.40, the next target could be located around resistance that stands at $0.50.

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Technical analysis of Waves (WAVES)
Waves is an all-encompassing gateway blockchain platform with a goal to make open finance attractive for regular users on a day-to-day basis. Waves (WAVES) has weakened from $10 to $4.12 in less than two weeks, and the risk of further declines is not over yet. The price has stabilized now above $4.3, but we can expect that the price could test the support level at $4 in the upcoming days or even hours.

According to technical analysis rules, a break below the support level that stands at $4 would indicate that WAVES could probably test the $3.5 level. Waves (WAVES) remains under pressure; still, if the price advances above $7, the next target could be located around resistance at $8.

Conclusion
The prices of most public cryptocurrencies have collapsed in a relatively short period, and all eyes are now watching to see whether Bitcoin will be able to hold above the important support level that stands at $20,000. The prices of Fantom (FTM) and Waves (WAVES) are in correlation with Bitcoin, and if the price of Bitcoin drops below $20000 support, we can see new lows for the prices of these two cryptocurrencies. Risk aversion continues to dominate financial markets, especially after Federal Reserve Chairman Jerome Powell said that the U.S. government would begin taking a more aggressive stance to fight inflation. The consensus appears to be that the cryptocurrency market will drop much lower before reaching the bottom of the ongoing bear market, and American investor Jeffrey Gundlach said that he would not be surprised to see Bitcoin at the $10,000 level.

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