thecoinrepublic.com
- 1 Fantom price is currently trading at $0.2635 with a gain of 2.49% during the intraday trading session.
- 2 FTM price trades below the 20,50,100 and 200-day EMAs.
- 3 The year-to-date return of Fantom is 31.22% while the three-month return is -44.50%.
FTM price has been stuck in a wide consolidation zone ranging between $0.3210 and $0.2390 after occurred during the start of June. The drop was drastic and caused a loss of roughly 36% from June’s high of $0.3336. After this, the price formed a support at $0.2390 and started to trend upwards, thereby forming higher lows.
The move was discontinued as the price faced rejection from $0.3210 and began to decline. As bitcoin started to lose momentum and witnessed increased involvement of bears, the price of altcoins also experienced a similar movement.
Currently, the price is moving in the downward direction headed toward the major support level of $0.2390. The cryptocurrency’s price has formed a minor support at $0.2560 and is consolidating on smaller time frames.
If the current candle can break and close above $0.27, there is a possibility that the price might head toward the resistance level of $0.31, thereby causing a rise of approximately 15%. On the other hand, if bears can push the price below $0.2560, it might melt down to the $0.2390 level.
Analysis Of Fantom Ecosystem
The daily active addresses in the Fantom ecosystem have dropped by 0.5%, reaching 39,305 in the past three months. Daily active addresses peaked on July 3 when it reached 93,670, after which it declined sharply. The daily transactions have reached 356,156 and have increased by 8.3% in the past three months.
Total Value Locked (TVL) witnessed a severe drop of -82.6%, reaching $67.8 million. A higher TVL means more capital is locked in the DeFi protocol. The higher the TVL, the more trustworthy the platform. The 24-hour trading volume also declined by 33.38% and the market capitalization is down by 0.13%.
Will FTM Price Melt Down To $0.2390?
The cryptocurrency’s price trades below the 20,50,100 and 200-day EMAs, implying the high influence of bears in the market. The 50-day EMA has been acting as a resistance for the price. Chaikin money flow score is -0.03, suggesting slight weakness in the Fantom price.
RSI has dropped below the 50 mark and currently trades at 42.43, indicating the presence of bears. The long/short ratio is 0.99 with 49.8% longs and 50.2% shorts, hinting at a slightly higher selling position in the last 24 hours.
Conclusion
The overall market structure and price action of Fantom is bearish but on the smaller time frames, the price has entered into a narrow consolidation zone. The TVL has experienced a sharp drop which is also a major concern for the investors. Technical parameters point to the presence of bears in the market.
Technical levels
Major support: $0.2390 and $0.2130
Major resistance: $0.3210 and $0.35
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.