The Fantom price could finish the year on a weaker note as fears over rising rates and Omicron rattle investor confidence in cryptos.
Fantom (FTM) has started the week firmly on the backfoot at $1.383 (3.10%), as the crypto market follows global indices lower as bearish macro factors build. Bitcoin continues to slide further away from the $50k threshold this morning (last $46,500), and Ethereum has failed to sustain the $4,000 level. As a result, aside from a few exceptions like Terra, altcoins are weaker across the board.
Today’s move continues the bear market due to the adjustment of central bank policy and the resurging virus. Over the weekend, several countries have imposed restrictions, with several more closely monitoring the situation. Subsequently, equities are deep in the red in Asian trading, encouraging selling in cryptos.
Fantom has performed miserably over the last two months. After reaching an all-time high of $3.69 in October, FTM has dropped close to 65%, losing over $6 billion of market cap in the process. Furthermore, Fantom is losing ground against rival smart contract platforms and is currently ranked 42nd in the Crypto rankings.
The daily chart shows the Fantom price is approaching the 200-Day Moving Average at $1.196. The technical look deteriorates rapidly if FTM closes below the long-term indicator. In that event, I expect an extension towards the May highs of around $0.984. On the other hand, a broader risk-off could target the $0.500 area.
The bearish view is valid as long as the Fantom price remains below last week’s high. Therefore, a close above $1.670 relieves the immediate pressure, invalidating the short-term pessimistic outlook.
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