This article discusses the prospects for the Fantom price as buyers return to the cryptocurrency market in a push to finish the year strong.
Fantom (FTM) is ticking up nearly trading Wednesday as Bitcoin launches an assault on $50k. FTM is changing hands at $1.541 (+4.06%), extending the gains from this month’s low to 30%. However, the token is around 55% below November’s all-time high. Nonetheless, if the crypto market continues its recovery, the Fantom price could experience substantial uplift into 2022.
Bitcoin’s sudden pump to $49,500 spurs risk-on sentiment across the crypto complex. Many assets have recovered substantially from the losses suffered earlier in December, but Fantom is underperforming. However, in previous bullish expansions, capital has rotated from winners into laggards as investors look for the next coin or token to catch up.
The daily chart shows the Fantom price is consolidating above the 200-Day Moving Average (DMA) at $1.207. Notably, the Moving Average Convergence Divergence (MACD) indicator signals growing bullish momentum. Furthermore, FTM has crossed the mid-point of the Bollinger Bands at $1.500 (20-Day Moving Average) and should therefore extend towards the top of the BB channel at $1.800.
However, the 100-DMA at $1.985 and the 50-Day at $2.043 provide robust confluent resistance above the market. For that reason, FTM’s gains may be limited unless the broader market embarks on a sustained bull run into year-end. On the other hand, if BTC fails to hurdle $50k convincingly, altcoin gains may be fleeting. In that event, the 200-DMA comes back into focus.
The early signs are encouraging, although two days of strength does not constitute a recovery. On that basis, I am cautiously optimistic but not convinced the Fantom price will achieve $2.00 again in 2021.
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This post was last modified on Dec 22, 2021, 09:34 GMT 09:34