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Fantom token has recovered by 28% in the last seven days
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Developments around Fantom asset base have boosted the cryptocurrency
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FTM has hit a descending trendline and could correct
Fantom (FTM/USD) trades at $0.24 as of press time, its highest level in nearly a month. The cryptocurrency has risen by 28% in the past week, a robust recovery since it bottomed at $0.17. The gains come amid positive cryptocurrency news.
The latest FTM gains came as reports suggested that the Fantom Foundation earns consistent profits. According to the financial records dated November 28, Fantom was generating more than $10 million annually. The reports also indicated that Fantom could have about $340 million worth of digital assets. The assets could last 30 years without the foundation having to sell its stash of FTM tokens.
With many crypto firms and exchanges under a liquidity crunch, the records of Fantom boosted investors’ confidence. Addresses holding Fantom tokens saw a strong increase in November from the smallest to the largest investors. The accumulation suggests that investors anticipate a recovery in the cryptocurrency’s price, which has lost 93% from its ATH. But can buyers sustain the recovery?
FTM heading to the descending trendline
Technically, the Fantom token has recovered above crucial support at $0.20. The recovery has seen the cryptocurrency move above the moving averages. However, the token remains trapped by a long-term descending trendline.
The RSI reading shows that FTM is nearing overbought levels at the descending trendline. A possible correction could occur before buyers have a chance to break the crucial barrier.
What next for FTM?
A breakout above the descending trendline will confirm further gains in Fantom token. A breakout will allow buyers to ride to $0.30 next and $0.40.
On the flip side, FTM will be rejected at the descending trendline. That will allow bears to force a correction back to $0.20. However, with growing FTM accumulation, buyers may crave another chance to break above the descending trendline.
Where to buy FTM
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Fantom blockchain was touted as a leader in smart contracts
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Fantom has been losing TVL since the developers exited
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FTM is under pressure at $0.24
Fantom FTM/USD – a cryptocurrency that once traded at $3.6 exchanges hands at just $0.25. FTM has lost by double digits in the past week. It looks bearish despite recovering 2% in the last 24 hours. Are we set for a further slide or recovery?
In 2021, Fantom blockchain was touted as among the best smart contract protocol for dApps and digital assets. That was due to the blockchain’s high throughput and fast transactions. The expectations that Fantom will drive DeFi growth helped its native token to surge last year. Alongside the utility aspects, such as staking, FTM gained prominence as prices touched new highs.
A totality of uncertainty could be behind the recent drop and weak recovery in FTM. Since the news of the exit of key developer Andre Cronje, Fantom has never been the same. The news was later followed by geopolitical jitters and macro issues, which gave FTM the final blow. These macro events are far from over, while the return of the exited developers remains speculation. The total value locked on Fantom has fallen to just $498.7 million from $8.03 billion in March.
FTM remains vulnerable as the price weakens at the support
eToro
eToro is one of the world’s leading multi-asset trading platforms offering some of the lowest commission and fee rates in the industry. It’s social copy trading features make it a great choice for those getting started.
Binance
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.
Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
Source – TradingView
A technical outlook shows that FTM has remained on a downtrend since the mid-August high of $0.4. Both the 20-day and 50-day moving averages offer resistance above. An RSI reading of $38 shows investors have been aggressively selling the token.
Concluding thoughts
FTM remains vulnerable at the $0.24 support zone. There is no bull trigger for the token, and the price lacks momentum. The next potential level is $0.21 if FTM buyers fail to inspire a comeback at the current zone.
- FTM/USD is down 7.83% in the past 24 hours and 33% in the last seven days
- The crypto token sits at the support of $2.0 in a bearish market
- $1.50 is the next support level if FTM/USD breaks below the consolidation zone
Fantom’s token FTM/USD has been on a strong rally since December 21, when all other cryptocurrencies were experiencing major weaknesses. It rose from a low of around $1.35 on December 21 to a high of $3.37 on January 17.
However, the token faced bearish pressure and has been dropping since then. At the current trading of around $2.0, FTM/USD has dropped by more than 7% in the past 24 hours, extending losses in the week to at least 33%.
FTM/USD technical analysis – $2.0 is the established support
Source – TradingView
Looking at the daily chart above, FTM/USD has retreated to the support of $2.0. It attempted to rebound before retesting the support again in price weakness that has engulfed the entire cryptocurrency industry. The overall weakness has been connected to the upcoming policy tightening by Fed aiming to tame the rising inflation.
Although FTM/USD is rebounding from the support, it still faces bearish pressure, with the 9-day, 14-day, and 20-day providing resistance. A short-term resistance also exists at the $2.39 level and could constrain prices. We need to watch the close of the candlestick on the daily chart to confirm a trend reversal or continuation.
Summary
Based on the technical pointers, FTM/USD presents a buying opportunity if the $2.0 level holds. A price action signal such as the formation of a bullish pin bar at the support could signal a trend reversal and take FTM/USD higher.
Nonetheless, FTM/USD could break below the support if crypto weakness continues. A break below the current level would see the token claim the $1.5 zone, which is the next support.