Fantom's FTM token saw its price decline 0.71% over the past 24 hours to $0.2019 at the time of writing. The cryptocurrency currently has a market capitalization of $565.16 million and recorded $51.08 million in trading volume over the last day.
In this in-depth analysis, we’ll break down the critical metrics for FTM across varying timeframes to extract actionable insights for developing effective trading strategies.
Taking a granular look at the 1-hour chart, FTM has ticked up a slight 0.05%. This minor uptick indicates near-term selling pressure is beginning to dissipate as bargain hunters buy the dip. However, gains have been muted, reflecting continued caution in the near-term.
Zooming out to the daily timeframe shows FTM has retreated 0.71% over the past 24 hours. This signals bears have gained the upper hand recently, allowing a pullback from local highs. The price is testing support around the 10-day moving average which needs to hold to avoid further losses.
On the weekly chart, the pullback is more pronounced with FTM down roughly 9% over the past 7 days. This highlights building downside momentum likely due to worsening sentiment across digital assets. However, oversold readings suggest a corrective bounce could emerge soon.
Finally, taking a wide-angle view on the 6-month chart reveals FTM remains stuck in a brutal bear market along with the broader altcoin complex. It has plunged nearly 60% over this period. But with capitulation potentially nearing, the risk/reward profile appears skewed to the upside at current levels.
What's Next for Fantom? Key Price Levels to Monitor
When forecasting potential price action on FTM, traders will be closely monitoring these vital levels:
To the upside, initial resistance lies around $0.22, then the 10-day moving average near $0.23. Above that, the 21-day MA around $0.25 represents the next test. If positive momentum accelerates, the 50-day MA at $0.27 is the final barrier before FTM can challenge $0.30.
On the downside, initial support rests at $0.19, then the strong support zone around $0.17 which marks the 2022 lows. Below that, the 0.618 Fibonacci retracement level sits at $0.14. The final bear market target would be a retest of the COVID-19 bottom around $0.10.
Should You Buy Fantom in the Current Bear Market?
For long-term cryptocurrency investors, FTM looks compelling around current levels given the extreme oversold conditions. According to on-chain analytics firm Santiment, the percentage of circulating FTM supply held by addresses that hold between 100,000 to 10 million tokens recently hit an all-time high - a potentially bullish sign of accumulation.
Additionally, Fantom remains one of the most promising smart contract platforms with a fast, secure, and scalable blockchain. Its robust ecosystem provides strong tailwinds once the macro backdrop improves and capital rotates back into high-quality altcoins.
However, risks remain tilted to the downside until a definitive trend change emerges. Prudent investors may consider scaling into a position rather than buying all at once. This allows for a better overall entry price in case near-term weakness persists. Stop-loss orders should be utilized to contain potential capital losses.
Appropriate position sizing is critical with volatile assets like crypto. But for investors able to embrace the swings, buying FTM around current levels could generate sizable ROI over a 12-18 month time horizon. Upside potential appears skewed to the upside once selling exhaustion kicks in.
Should You Buy FTM Now or Wait for Lower Prices?
With Fantom price down significantly from its 2021 high, investors face the critical question of whether to buy now or wait for lower prices. There are compelling arguments on both sides.
Buying now allows capitalizing on deeply oversold conditions before a potential trend reversal occurs. According to on-chain data, long-term FTM holders are still accumulating, signaling conviction in future price appreciation. Dollar-cost averaging in at current levels secures excellent exposure ahead of the next sustained rally.
However, attempting to precisely time the bottom is difficult. The macro backdrop remains challenging, and capitulation events often overshoot to the downside. With more uncertainty likely ahead, patient investors could potentially improve their entry price by waiting for unequivocal signs of a bottoming formation.
Given the unclear outlook, a balanced approach may be optimal. Consider initially buying a partial position at current prices, then maintain firepower to scale in lower if weakness persists. This blended strategy provides upside exposure while retaining the flexibility to cost average down at better prices if FTM continues falling.
How Much Further Could Fantom Decline in the Ongoing Downtrend?
With Fantom still stuck in a macro downtrend, traders are wondering how much additional downside could materialize if bearish momentum persists. Let's analyze key support levels on the FTM chart to gain insights into where buyers could emerge.
The first critical support zone lies between $0.14 - $0.16. This area corresponds with the 0.618 Fibonacci retracement of the previous FTM uptrend, making it important for bulls to defend. If selling pressure overwhelms this zone, it opens the door to a drop towards the major psychological support at $0.10.
Below $0.10, the final support zone sits around $0.08 - $0.06 which marked the COVID-19 bottom. For FTM to reach this downside target, extreme fear would likely need to grip markets. However, traders should watch for potential support around the $0.05 level during a capitulation event.
It’s also worth noting the $0.12 area may offer temporary support on the way down as a large, round number. But overall, the data suggests a drop to the $0.08 - $0.06 range would likely represent the maximum downside for FTM given current market conditions.
While risks remain tilted lower, Fantom’s leading layer-1 blockchain boasts a robust ecosystem and strong developer community. Once macro uncertainty recedes, substantial upside potential exists from around current levels. But prudent risk management remains critical in the short-term.