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Fantom retest yearly lows – when is recovery likely?

2min Read

Fantom has dropped to a crucial demand zone and yearly lows which is a discounted price level for bulls. But there’s a caveat to it all.

Fantom retest yearly lows - when is recovery likely?
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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?

Source: FTM/USDT on TradingView

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

Source: Coinalyze


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. 

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Benjamin Njiri is a Crypto Analyst and Journalist at AMBCrypto who specializes in technical analysis and identifying emergent market trends. He excels at breaking down complex chart patterns and on-chain data to make them accessible and actionable for investors. His rigorous analytical approach is founded on his academic background as a Telecommunication Engineering graduate. This discipline has equipped him with an expert understanding of signal processing and data analysis, allowing him to systematically filter market noise from true trend signals with engineering precision. Armed with this unique perspective, Benjamin focuses on providing clear, data-driven insights into the digital asset landscape. His work is dedicated to demystifying the intricate world of cryptocurrencies, empowering readers to understand the forces that shape the market and to navigate it with greater confidence.
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