Fantom Crypto Down by -78%, Opportunity to Seize? Analysis from August 14, 2024.

While the crypto market has been revised downwards, the Fantom cryptocurrency has recorded a drop of more than 78% since the end of March. Let’s examine the upcoming prospects for FTM’s price.

Fantom (FTM) Situation

After reaching a high of $1.20, Fantom faced downward pressure that brought its price back to $0.55. Despite an attempt to rebound, buyer interest was not sufficient to continue the upward movement. The cryptocurrency continued its decline, reaching $0.38 and then $0.26 a few days later. It seems that buyer interest manifested at this level, as FTM’s price recently rebounded. It is interesting to note that this rebound level corresponds to a former point of interest confirmed by a significant value area. Thus, notable resistance zones can be seen at $0.42 and even $0.52. 

At the time of writing this text, the price of Fantom is trading around $0.37. Despite FTM’s ongoing rebound, the short-term trend of the crypto remains bearish. Regarding the medium and long-term trend, it is not surprising that the latter is being questioned after the significant drop it has undergone. This can be illustrated by the large gap between Fantom and the 50 and 200-day moving averages, both oriented downwards. On the price momentum side, although a slight rebound can be noted, this momentum has largely lost its strength. This is illustrated by the FTM price itself as well as the oscillators. All these elements thus demonstrate a cryptocurrency currently heavy on the cryptocurrency market.

SOL/USD price chart in dailyThe current technical analysis was conducted in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. You will find Lives, educational content, and mutual support around financial markets in a professional and warm atmosphere.

Hypotheses for Fantom (FTM) Price

• If the price of Fantom stays above $0.30, one might anticipate a continuation to the upside to the $0.42 level, or even $0.52. The next resistance to consider, if the upward movement continues, could be at $0.62, and beyond that, $0.80 can be noted. At this point, this would represent an increase approaching 118%

• If the price of Fantom fails to stay above $0.30, a return to the levels of $0.26 could be considered. The next support to consider, if the downward movement continues, would be around $0.24 or even $0.22. Lower still, the support at $0.17 can be noted. At this point, this would represent a decrease of about 54%.

Conclusion

Despite a recent rebound, Fantom remains anchored in a bearish trend, reflecting a loss of momentum and persistent uncertainties in the market. Current signals suggest that the cryptocurrency remains under pressure, struggling to regain a sustainable upward direction. Nonetheless, such a decline could present an opportunity for contrarian investors. Thus, it will be crucial to closely observe the price reaction to the various key levels to confirm or refute current hypotheses. It is also important to remain vigilant against potential “fake outs” and market “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies may also evolve rapidly based on other more fundamental factors.