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The Fantom Price exploded 100% higher to a new record price of $2.453 in the first week of October before easing 20% to $1.970. During the correction, Fantom (FTM) found robust support at the former all-time high, which suggests it may carve a path to a new record sometime soon.
Fantom massively outperformed the market over the last four months. The smart contract platform’s native FTM token gained over 1,600% from the July low of $0.155, reaching $2.453 on the 8th of October. As a result, Fantom’s market cap reached a staggering $5.87 Billion, ranking it the 35th-largest cryptocurrency. An impressive feat considering FTM started 2021, valued at less than $50 million.
Despite the parabolic rally, investors remain incredibly bullish on the prospects for the platform. Fantom is a high throughput, low-cost decentralized Finance (Defi) platform, with transactions speeds below 2 seconds. As a result, some consider Fantom, like Solana and Cardano, a threat to Ethereum. However, the obvious concern is that the price has gotten ahead of itself and requires consolidation before further gains. Furthermore, considering the incredible run, the Fantom price could come back a long way and still be one of the best performing cryptocurrencies this year.
The recent price action has formed a bulled flag on the 4-hour chart. The lower edge of the flag at $1.940 joins the former ATH of $1.938 in September to provide significant support. A bull flag is viewed as a bullish continuation pattern and often precedes an upside breakout. For that to play out, the Fantom price must clear the top edge of the flag at $2.177. In that event, FTM should extend to a new record.
Below the $1.938 support, the 50-day moving average at $1.785 is the next critical level to watch. If FTM fails to hold the 50 DMA, a steeper decline towards the 100 DMA at $1.527 looks probable. Whilst the flag pattern remains intact, I maintain a cautiously bullish outlook. However, the optimistic view becomes invalid below $1.938.
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