The price of Fantom (FTM) has increased significantly over the past couple of days. However, it has yet to recover a crucial horizontal level which would indicate that the trend is bullish.
On November 28, Andre Cronje posted a Medium thread detailing Fantom’s financial history.
The article outlines the entire financial history of the Fantom blockchain, from June 2018 when they raised $40,000,000 in Ethereum (ETH) to November 2022, a time when they have over $100,000,000 in stablecoins, $100,000,000 in cryptocurrencies and $50,000,000 in non-crypto. assets. With the current salary burn, they have a 30-year track.
The main takeaways from the article are:
- Fantom has rejected numerous stock market listing and influencer marketing attempts.
- They actively sought out decentralized finance (DeFi) solutions. Most of the yield farming has been done in Compound (COMP) and Synthetix (SNX). Each year, Fantom earns around $6 million from its DeFi strategies.
After the article was published, the FTM price increased by 20%. Other Fantom ecosystem tokens such as SCREAM and GAINS have also seen strong increases.
Fantom Price Rebounds After Bullish Divergence
Price action on the daily time frame shows that FTM price has been falling since hitting a high of $0.315 on November 5th. The fall was steep, leading to a low of $0.164 on November 22.
Fantom price has since risen preceded by a bullish RSI divergence (green line). The rate of increase has accelerated significantly over the past 24 hours. The RSI is now above 50, a sign of an uptrend.
However, Fantom price was rejected by the $0.22 horizontal resistance zone (red icon).
Despite the bullish RSI, the Fantom price prediction is considered bearish until it reclaims the $0.22 resistance zone.
A crucial long-term level could determine the trend
Technical analysis of the weekly chart reiterates the importance of the $0.22 area. Currently, the FTM price has declined below the zone. A similar drop occurred in July 2021 (green circle). But, after Fantom price recovered the zone, it started an upward movement which led to a new all-time high.
Therefore, if a recovery occurs, a similar increase could occur. This is also supported by the weekly RSI, which has generated a bearish divergence (green line).
However, there is hardly any support below the current price up to $0.04. Therefore, if a rejection occurs instead, a very strong downtrend could be in store for the future price.
Accordingly, the Fantom price prediction can be considered bullish if the FTM price recovers the $0.22 area. Conversely, if it is rejected, there is a possibility that a sharp drop towards $0.04 will occur.
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