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  • Writer's pictureConnie Chan

Fantom Moves Closer To Crucial Support, Is This Short-Term Price Correction?

The Fantom price had seen a significant increase at the beginning of February; however, FTM had seen a substantial decline at the time of publication. Over the last 24 hours, FTM retraced over 4%, and in the previous week, the token lost above 21% of its market value.

With the Bitcoin price sliding on the chart, the broader market has been depicting weakness, with many tokens struggling to remain above their immediate support. The technical outlook of Fantom also suggested that demand and accumulation had fallen over the past two weeks.

The buying strength continues to be low, so the price might continue to decline, strengthening the bears. Fantom must remain above its local support area, as a fall below that level will accelerate the token’s downhill.

If demand rises slightly, Fantom bulls can try to move the price above the $0.47 mark, preventing the token from depreciating further. Currently, the FTM price is trading 87% below its all-time high secured in 2021.

Fantom Price Analysis: One-Day Chart

FTM was trading at $0.43 at the time of writing. After piercing through many levels of resistance during the first week of February, FTM lost momentum and fell through several levels of support. The $0.41 price mark is a vital price floor for the token.

A move below that level will make FTM trade near $0.39. If FTM retraces and remains above the $0.41 price level, the token could attempt to breach its next resistance level. This would present buying opportunities as the coin could bring short-term gains to traders.

The overhead price ceiling for FTM stood at $0.48; a move above that level could push the token to trade near $0.52. The amount of FTM traded in the last session declined, indicating a fall in buying strength.

Technical Analysis

FTM had visited the overbought region a couple of times during the beginning of the month. Once the bears stepped in, price and demand both started to show corrections on the chart.

The Relative Strength Index moved below the 50-mark, meaning the price belonged to the sellers. Similarly, lack of demand pushed FTM to move below the 20-Simple Moving Average line (SMA), which suggested that the sellers were driving the price momentum in the market.

The other indicators have also shown that the bears controlled the market. The Moving Average Convergence Divergence (MACD) underwent a bearish crossover and formed red signal bars tied to sell signals.

The Chaikin Money Flow noted a downtick but remained in the positive zone; the indicator was above the half-line, indicating capital inflows were more than outflows, although inflows were declining.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


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