FTM’s short-term price action could recover again only if…

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Fantom [FTM] dropped below $0.42 following the remarks of Fed Chair Jerome Powell on March 7. Powell told the U.S Senate Banking Committee that inflationary pressure has been way higher than expected. 

The aforementioned position points to possible aggressive rate hikes. As expected, investors priced in the remarks as Bitcoin [BTC] dropped below $22K. Similarly, FTM and the rest of the altcoin market faced sustained sell pressure too. In fact, FTM was down by 8.5% over the last 24 hours, according to CoinMarketCap. 

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Source: FTM/USDT on TradingView

On the lower timeframe chart (4 hours), FTM rallied before a price rejection claimed all the gains. FTM’s price action in mid-February formed a double-bottom pattern, a bullish formation that offered investors 24% gains after retesting the overhead resistance of $0.5951.

However, the correction after the rejection has set FTM to depreciate by 35%, at the time of writing. The drop chalked a descending channel before FTM entered a consolidation range of $0.3944 and $0.4265 over the past few days. Prevailing macroeconomic headwinds could sustain the drop below the price consolidation. 

Therefore, FTM could continue oscillating between the highs and lows of the descending channel (orange). Short-term bulls could seek new buying opportunities at the channel’s mid-level or the lower boundary of $0.3857 and $0.3552, respectively. The targets will be the channel’s mid-level, 13-period EMA, 26-period EMA, or the channel’s upper boundary. 

On the contrary, short-sellers could