thecoinrepublic.com
Fantom price overpowered the recent selling pressure and steadily recovered above the 20-day exponential moving average. Earlier, the price resumed its way toward recovery after a rebound from the $0.40 support.
However, Fantom has to go a long way to recover the earlier losses. The current market scenario highlights a preluding correction phase with the price suffering since mid-March on a broader outlook.
Furthermore, on-chain metrics, open interest (OI) data revealed the strength of buyers near the demand. The increased presence of the buyers may push the price higher to mark an end to the correction phase.
Fantom is an open-source, decentralized platform designed for smart contracts, DApps, and digital assets, offering an alternative to Ethereum. Its primary aim is to address the limitations of earlier blockchains by balancing scalability, security, and decentralization.
$15 Million Inflow Re-establishes Bulls’ Presence
Fantom price has risen in the recent sessions after taking a strong bounce from the $0.40 level. As of now, FTM has hovered close to $0.53, rising 13% a week.
Recently, the FTM price suffered rejection from the 20-day EMA. However, a significant rise in the open interest helped FTM overcome its losses and resume its recovery.
The Open Interest contracts have observed rose nearly 15% intraday, as reported by Santiment. The OI data surged from $94 Million to $108 Million, establishing the buyers’ presence at the lower levels.
Furthermore, the transaction volume surged by nearly 8% intraday to $116.49 Million. The volume to market cap ratio at 7.90% suggests mild volatility in the crypto. Fantom ranks 60th in the crypto-verse with a live market capitalization of $1.48 Billion.
Can Fantom Break out of Correction Phase?
The daily chart highlights the formation of a falling wedge pattern, suggesting an ongoing correction phase. Fantom price has been in a correction phase since mid-March and has declined over 30% since then.
The recent sessions showed a bounce from the lower boundary of the falling wedge pattern. The price bounced back from the $0.4 demand zone and surpassed the 20-day EMA, reflecting buyers’ presence.
The bulls need to overcome more hurdles to regain control over the trend with a bullish reversal. On the higher side, the 200-day EMA and $0.64 level may act as a strong hurdle.
Now, if the price records a sustained growth above the $0.64 level, it may validate a bullish reversal and mark the end of a correction phase. If the selling pressure exceeds, FTM may plummet to the $0.40 mark or lower.
Fantom price rose 13% in a week, bouncing from $0.40 to around $0.53.
Despite a rejection from the 20-day EMA, a 15% increase in Open Interest (from $94 Miliion to $108 Million) and an 8% daily rise in transaction volume ($116.49 Million) was witnessed. This indicates a strong buyer presence.
The falling wedge pattern on the daily chart highlighting how it was in a correction phase since mid-March. A sustained rise above $0.64 could signal a bullish reversal, while failure to do so might lead to a drop back to $0.40 or lower levels.