Fantom reached the psychological threshold of $1 after rebounding to $0.17. Let's take a look at the future prospects for FTM.
Fantom situation (FTM)
Since the end of October 2023, Fantom has continued to increase. Indeed, the FTM was trading at this period just below $0.20. At the end of December, the cryptocurrency crossed the threshold of $0.50 before beginning a correction to $0.30. This price level acted as support, which allowed it to cross the resistance of $0.66 and then the symbolic threshold of $1. Namely, the $0.30 support was and still remains today an area of significant value. Thus, this evolution of the Fantom price now seems to confirm an upward trend in the short and medium term.
The price of the cryptocurrency recently reached a new high of $1.22. The cryptocurrency is only a few cents away from the 38.2% Fibonacci level, calculated from its all-time high of $0.17, or $1.65. It is now well above its 50-day and 200-day moving averages, both of which are trending higher. In theory, this supports the idea that the cryptocurrency is in an uptrend. Unsurprisingly, the bullish momentum of the cryptocurrency has largely rebounded, as illustrated by the oscillators, as well as the price of Fantom itself.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (FTMUSDT)
Open interest on FTM/USDT contracts followed its price trend, which was generally upward. This demonstrates a speculative interest mainly oriented towards purchasing. These comments can be confirmed by the fact that the funding rate linked to Fantom perpetual contracts is positive, and that the liquidations of long positions are particularly marked during the slightest declines in the market.
The one-month FTM/USDT liquidation heatmap shows that the liquidation zone around $1.01 has been reached, generating buying interest in the cryptocurrency. Currently, the most significant liquidation zones closest to the current price are above it, notably the first at $1.10. However, it is important to point out that below the current price, a liquidation zone lies just below $0.90. Price approaching these levels could result in a massive triggering of orders, increasing the risk of a period of heightened volatility for Fantom. These areas therefore represent a crucial point of interest for investors.
Hypotheses for the price of Fantom (FTM)
- If the Fantom price remains above $1, we could anticipate a bullish continuation up to the $1.12 level or its last peak at $1.22. The next resistance to take into account, if the upward movement continues, would be $1.65. At this point, this would represent an increase of more than +58.75%.
- If the Fantom price fails to stay above $1, we could envisage a return to $0.80 – $090. The next support to take into account, if the bearish movement continues, would be around $0.66. At this point, that would represent a drop close to -36%.
Conclusion
Fantom has shown a strong increase since the end of October 2023, exceeding key thresholds and confirming a change in upward trend. This performance underlines increased confidence in its long-term value. However, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current assumptions. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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