Following two days of unrelenting selling, pessimistic Fantom price expectations have reached the market. This comes after a period of bad mood in the cryptocurrency market, which has allowed for a bigger drop than most expected.
FTM Price Prediction
The FTM token is down roughly 7.6% in the last 24 hours, and it appears that the worst is yet to come.
The drop below the psychological support of 3.0005 has triggered a selling frenzy, pushing the price towards the 2.5968 support. 2.3172 represents an additional downside target if the corrective slide extends below this price point.
On the other hand, a bounce that breaks 3.0005 to the upside must be followed by a recovery. This move will set a resistance target of 3.1727, while a break of the 16 January low would allow bulls to advance to the 28 October high of 3.4816.
Bullish On-Chain signals
According to crypto intelligence firm Santiment, Ethereum competitor Fantom (FTM) is still showing optimistic on-chain signs as it surges close to new all-time highs.
Santiment says it’s keeping an eye on Fantom’s financing rate on Binance, which could indicate that the highly scalable blockchain for businesses is set to take off.
Fantom is approaching its all-time high of $3.47, set in late October. FTM’s financing rate on exchanges like Binance is a signal to keep an eye on. Prices have tended to fly upward when the indicator goes negative, indicating a large number of shorts.
The price of Fantom is holding above key Moving Averages (such as the 20,50,100, and 200 MAs), indicating the coin’s strength. If FTM breaks through the $2.81 critical level, the 20,50, and 100 MAs will serve as short-term support levels, with the 200 MA serving as a pivotal trend-changing level for investors.