Fantom retest yearly lows – when is recovery likely?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Fantom has been stuck in its yearly lows since mid-July.
- Open Interest rates have wavered since July.
From a price action perspective, Fantom’s [FTM] price levels were of critical interest for bulls. FTM has retreated to yearly lows below $0.26, and historically, it has seen a corrective rebound at these levels during similar retest periods in 2021, 2022, and 2023.
Read Fantom’s [FTM] Price Prediction 2023-24
But some dynamics and developments could delay FTM’s corrective rebound. The native Fantom ecosystem’s resident DeFi projects, like Curve Finance [CRV] and SpiritSwap, recently suffered hacks. Although Binance Labs rescued Curve Finance through a strategic agreement to expand to BNB Chain, the latter was forced to quit operations.
What’s next for FTM?
As the above zoomed-out daily chart shows, FTM saw corrective rebounds whenever it hit the yearly lows marked by cyan. The yearly lows double as a demand zone ($0.17 – $0.26) (cyan), a bullish order block on the monthly chart. So, it could continue to serve as a solid bullish stronghold.
The recent retest of the bullish zone in mid-June set FTM to push above $0.3 but faltered at the daily bearish order block ($0.32 -$0.33), orange. So far, the daily bearish OB has prevented any further upside since mid-June.
At the time of writing, FTM retreated to the yearly lows and monthly bullish OB again. With the RSI and CMF remaining below crucial thresholds, FTM could ease to $0.2 or $0.15.
Conversely, the immediate roadblock of $0.32 -$0.33 (orange) could persist in the coming weeks/months amidst current developments in the Fantom ecosystem and weakening BTC.
Sellers firmly in control
How much are 1,10,100 FTMs worth today?
According to crypto derivatives platform Coinalyze, aggregated CVD (Cumulative Volume Delta) went southwards since late July, reinforcing that sellers were firmly in control over the same period.
It is worth noting that Open Interest rates have wavered between late July and August, oscillating between $50 million and $60 million. It demonstrates that demand for the asset stagnated in the derivatives market, which could delay a corrective solid rebound.