Fantom Price Analysis: Bearish Trend Persists as FTM Drops Below Key Levels

Fantom Price Analysis: Bearish Trend Persists as FTM Drops Below Key Levels

Fantom (FTM) is currently experiencing a strong bearish trend, with its price declining by 16.07% over the past week. The cryptocurrency is trading at $0.2217, down 5.97% in the last 24 hours. This downward movement is part of a broader decline that has seen FTM drop from a monthly high of $0.2808 to a recent low of $0.227.

Recent Price Action and Support Levels

The current support level for FTM is at $0.215, with the asset struggling to maintain momentum above $0.23. Historically, FTM faced significant volatility during the Terra Luna collapse, plummeting 40% to lows of $0.22. Since then, the cryptocurrency has traded within a narrow range of $0.20 to $0.25, briefly recovering to $0.25 in Q3 2022 before resuming its downward trajectory.

Technical Indicators Suggest Bearish Momentum

The technical indicators for FTM paint a bearish picture. The Relative Strength Index (RSI) is currently at 36, nearing oversold territory, which indicates that the asset may have further room to decline. The MACD line is on the verge of crossing below the red signal line, signaling increasing bearish momentum. However, a bullish reversal is still possible if the MACD line crosses above the signal line.

Trading Volume and Market Sentiment

FTM's trading volume has increased by 30% to $109,538,474.40, reflecting heightened market activity. However, the asset is trading below the daily 200 Simple Moving Average (SMA), which further underscores bearish dominance. The Bollinger bands are also indicating increased volatility, with the lower band touching $0.2051, a key level to watch in the near term.

Short-Term Outlook

In the short term, the bulls are attempting to defend the critical psychological support level of $0.200. However, with prices trading below the 200 EMA and all moving averages on the four-hour chart showing bearish sentiment, the path to recovery appears challenging. The immediate resistance level is at $0.23, and a break above this level is necessary to invalidate the current bearish streak.

Conclusion

Fantom's price analysis suggests that the asset is likely to continue its bearish trend in the near term, with potential support levels at $0.215 and $0.220. While there is a possibility of a bullish reversal, the overall market sentiment and technical indicators currently favor the bears. Investors and traders should closely monitor these levels and indicators for any signs of a trend reversal.