Fantom Faces Downturn: Are Bulls Ready for a Comeback?
Fantom (FTM) has experienced a notable decline, breaking out of a falling channel in a larger time frame. However, the token has also seen a 30% increase following the breakout.
After triggering a pullback in October, Fantom struggled to maintain its bullish momentum and faced resistance around the crucial $0.800 zone, resulting in a steady decline.
Nevertheless, the bearish trend seems to have halted near the last swing low, forming a bullish candlestick pattern. Additionally, the price is hovering near the 200-day exponential moving average (EMA), which serves as a support level.
Increased Optimism for Fantom Price on Wider Time Frame
Crypto analyst Kris088 (@saitokris088) has expressed optimism regarding the FTM crypto, pointing out the formation of a significant inverted head and shoulders pattern on the weekly chart.
Anyone seeing this forming huge inverted h&s on 1W? $FTM $S pic.twitter.com/GXUr6O7frg
— kris088 🆓️ (@saitokris088) October 26, 2024
This pattern could attract buyers and fuel further price increases. If Fantom successfully surpasses the $0.800 territory, it may trigger a strong buying momentum.
Can FTM Price Reach $1 by the End of 2024?
Currently, Fantom is trading at $0.643, representing a modest 0.34% gain over the past 24 hours. Its market capitalization stands at $1.80 billion.
However, the 24-hour trading volume has decreased by 56%, indicating a decline in investor and trader involvement. Despite this, Fantom has managed to sustain the 200-day EMA and maintain a bullish trend since August. This could indicate buyer dominance.
If Fantom finds support at the 200-day EMA and surpasses the 20-day EMA, buyers might consider establishing long positions. Should the price continue to hold above the 20-day EMA and surpass the recent high, buying activity is likely to increase. A surge of buyer interest could propel the price to the psychological level of $1.
On the other hand, if the price drops below the 200-day EMA, panic selling may occur. In this scenario, Fantom could sustain trading below the 200-day EMA, with sellers potentially pushing the price down to the strong demand zone of $0.20.
Technical indicators reveal a rapid decline in the RSI, which currently sits at 44 and is heading towards the oversold region. The MACD has experienced a bearish crossover with the Signal line, although it remains above the Zero line. The histograms, however, have turned red, indicating a bearish outlook.
Fantom Price Forecast Based on Technical Analysis
Fantom has exhibited significant price volatility, particularly after breaking out of a falling channel. While gaining 30% following the breakout, its bullish momentum has been hindered by strong resistance at the $0.800 level.
The recent stabilization near the 200-day EMA has given buyers some hope, although a sustained drop below this level could lead to increased selling pressure and potentially drive the price down to $0.20.
Given the cautionary signals from the RSI and MACD, FTM’s ability to reclaim the $1 mark by the end of 2024 will depend on maintaining support at the 200-day EMA and demonstrating consistent upward movement beyond the 20-day EMA.