Crypto Fantom down -78%, opportunity to seize? Analysis of August 14, 2024.

As the crypto market has been revised downwards, Fantom crypto is down more than 78% since the end of March. Let’s take a look at the future outlook for FTM price.

Fantom (FTM) situation

After reaching a high of $1.20, Fantom came under downward pressure that brought its price down to $0.55. Despite an attempt to bounce back, buying interest was not enough to allow the upward movement to continue. The cryptocurrency thus continued its decline, reaching $0.38 and then $0.26 a few days later. It seems that buying interest has emerged at this level, as the FTM price has recently bounced back. Interestingly, this bounce level corresponds to an old point of interest confirmed by a significant value area. Thus, we can pay attention to the notable resistance areas at $0.42 and even $0.52.

At the time of writing, Fantom is trading around $0.37. Despite the ongoing rebound in FTM, the crypto’s short-term trend remains bearish. As for the medium- to 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 significant gap between Fantom and the 50-day and 200-day moving averages, both of which are trending downward. In terms of price momentum, although a slight rebound can be noted, we can see that this momentum has largely lost its strength. This is illustrated by the price of FTM itself as well as the oscillators. All of these elements thus demonstrate a cryptocurrency that is currently heavy on the cryptocurrency market.

SOL/USD Price Chart DailyThe current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Now a trainer at Family Tradinga community of thousands of self-employed traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.

Assumptions for the Fantom (FTM) price

• If Fantom price holds above $0.30, we could anticipate a bullish continuation up to the $0.42 level, or even $0.52. The next resistance to consider, if the bullish movement continues, could be at $0.62, and beyond that, we can note $0.80. At this point, this would represent an increase approaching 118%.

• If Fantom price fails to hold above $0.30, we could be looking at a return to the $0.26 levels. The next support to consider, if the bearish move continues, would be around $0.24 or even $0.22. Further down, we can note the support at $0.17. At this point, this would represent a decline of around 54%.

Conclusion

Despite a recent rebound, Fantom remains anchored in a downtrend, reflecting a loss of momentum and lingering market uncertainties. Current signals suggest that the cryptocurrency remains under pressure, struggling to regain a sustainable bullish direction. However, such a decline could make it an opportunity for contrarian investors. As such, it will be crucial to carefully observe the price reaction at various key levels to confirm or deny current assumptions. It is also important to remain vigilant against potential market “fake outs” and “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also evolve rapidly depending on other more fundamental factors.