On Friday, the Fantom price surged 22% but suffered rejection at significant trend-line resistance, indicating the bears are in control. This morning, Fantom’s native token FTM is trading at $1.9985 (-3.82%), down -22.65% in the last seven days and -30% so far in November.
Decentralised Finance (DeFi) platform Fantom was one of the better performing crypto assets between July and October. Over the three months, FTM surged +2,100%, reaching a record price of $3.6894 and an $8.85 billion valuation on the 28th of October. However, since then, the Fantom price has suffered a severe setback, sliding 46% in almost one-way traffic. However, a glimmer of hope arrived for the bulls when FTM bounced from critical support on Friday. Unfortunately, the rally that followed failed to reclaim the uptrend, and as a result, the price has reversed -15% and is back on course for another test of the crucial support level.
The daily chart shows the former trend support at $2.3000 now caps the Fantom price. As long as FTM remains below the trend line, it should continue towards the horizontal support between $1.7593 (last week’s low) and $1.7195 (100-Day Moving Average).
In my opinion, the most significant danger for holders is if the price closes below the 100-DMA. In that event, the next notable support is the 200-DMA at $1.1093, around 50% below the current level. Of course, that scenario is relatively pessimistic, but technically more than possible, especially considering the magnitude of the rally starting July.
However, recapturing the trend would be highly constructive. Therefore, a close above $2.3000 on the daily chart will invalidate the bearish thesis.
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This post was last modified on Nov 22, 2021, 05:19 GMT 05:19