Weak Fantom Price Action Could cause FTM to Fall Below $1.00

Summary:

The Fantom Price is softer on Monday as the cryptocurrency market turns lower following Bitcoin's reversal below $50k.

The Fantom Price is softer on Monday as the cryptocurrency market turns lower following Bitcoin’s reversal below $50k.

Negative sentiment is back in the driving seat at the start of this new trading week. Bitcoin has dropped almost $2,000 from Sunday’s high, crucially losing the psychological $50k level. As a result, Fantom (FTM) is down around 5% at $1.420 and close to breaking down. The FTM token has fallen almost 55% from the October all-time high, wiping over $5 billion from its market cap. There are two main reasons why the FTM token has performed poorly recently. The cryptocurrency market has lost around $800 billion in value over the last month—secondly, better-performing rivals like Terra have sucked liquidity and interest from Fantom. Subsequently, the price action looks poor, potentially triggering long liquidation and a steep decline.

FTM Price Forecast

The daily chart shows the Fantom price is hovering around the $1.400 support level. A close below $1.400 would mark the lowest closing price since early October, encouraging selling. In that event, a logical target is the September lows around $0.9500.

The biggest long-term problem facing FTM longs is the lack of nearby resistance. Because of the sharp decline earlier this month, the first resistance level is the 100-Day Moving Average at $1.988, meaning FTM could rally 30% and remain in a longer-term downtrend. For that reason, I am bearish, targeting a sub $1.000 price in the coming weeks; however, a close above $1.988 invalidates this thesis.