Fantom Price Rejected At $0.80 Resistance — Is FTM Heading To $0.50?
As the price of FTM struggles to surpass its $0.80 resistance will we see another downturn to $0.50?
Key Takeaways
- Fantom faces resistance at $0.80, and could possibly fall to $0.50.
- On-chain data shows FTM investor sentiment evenly split.
- MACD golden cross hints at possible larger uptrend.
Fantom (FTM) recently faced a setback as its price was rejected at the $0.80 resistance level, sparking concerns about a potential downtrend. This article explores whether FTM’s trajectory might see it descend to the $0.50 mark, examining key technical indicators and market sentiments to assess its future movements.
Fantom On-chain Data
According to IntoTheBlock data , profitability is a tie between investors who are in profit and those who are unprofitable. There are 49.76% “in the money” while 48.32% are “out of money”.
In addition, with nearly 2% being “at the money” this paints a neutral picture. Further looking at the transaction stats , we can see a significant downtrend potentially hinting at a diminishing interest for Fantom.
From its peak of 1,130 daily transactions on April 12, this number fell to 462 txs today, April 25. It is evenly distributed across all cohorts, indicating that sentiment among all investors is similar.
Fantom (FTM) Price Analysis
FTM began a new bull cycle from a low of $0.17 on October 18, 2023, achieving its yearly peak of $1.20 by March 22. A downturn followed, resulting in a 55% downtrend to a low of $0.56 on April 13.
We saw a three-wave move after a five-wave uptrend, suggesting Fantom’s price could have been in a corrective stage. And with a 38% increase from April 13 to a high of $0.80 on April 21, this assumption has proven true. Adding to the assumption of a starting larger uptrend is the MACD golden cross on the daily chart and the fact that the price managed to maintain a higher price point than its assumed wave 1 peak on December 26 last year.
However, there are some signs of caution.
Will Fantom Continue Increasing, Or Will FTM Crumble to $0.50?
FTM has been struggling to surpass $0.80 for the last 4 days and fell to $0.70 at its lower point on April 25. It is currently being traded at $0.74 and is showed some signs of the price finding support.
If the price ended its ABC correction and wave four on April 13, the following uptrend should start a larger one and show a lower degree five-wave pattern. This is why the determining factor between possible further upside movement or another reversal to $0.50 is what happens at $0.70.
According to the Elliott Wave Principle, the price cannot enter the territory of wave one on its fourth wave . This is now the $0.70 level below the territory of wave one. Going below would invalidate the possibility of a starting five-wave impulse and make the projection bearish. We could, in that case, expect to see FTM heading to the $0.50 area.
But if the price finds support at $0.70 and makes another higher high, it would validate the bullish count. We could, in that case, assume FTM had ended its ABC correction from its March peak. In this scenario, FTM would show that it established its low on April 13 and has the strength to rebound.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
FTM Price Recovers Above $1 as Fantom Announces Memecoins and Stablecoin Launch
