The Fantom price has bounced over 16% from yesterday’s low as the FTM token tries to regain some bullish momentum. Fantom (FTM) is trading at $2.66 (+0.62), -7% in November, and up around 2,070% year-to-date. FTM’s market cap is $6.68 billion, ranking it the 34th most valuable cryptocurrency ahead of Hedera (HBAR).
Altcoin season two has hit a roadblock in the last few days. After Bitcoin (BTC) spiked to a record $69,000 yesterday, it immediately plunged 9% to $62,800, triggering a market-wide sell-off. As a result, Fantom was down almost 20% at its lowest point before paring the one-day loss to 7.85%.
Despite the bounce, the FTM token is 28% below the $3.69 high set on October the 28th. But will Fantom’s recent poor performance encourage longs to take money off the table or create an opportunity to buy the dip? Taking yesterday’s bounce into consideration, it appears the market has chosen the latter. However, until Bitcoin stabilizes, the crypto market will remain skittish.
The daily chart shows the Fantom price has good scale-down support approaching $2.00. Notably, a rising trend-line from August, which intersects with the September high at $1.99, underpins the three-month bull market. Therefore, as long as FTM remains above $2.00, it should continue to trend higher. However, a close below $2.00 could drive the price down to the 100-Day Moving Average (DMA) at $1.50.
Above the market, Monday’s $3.16 closing price (highest ever) is the first resistance level. If Fantom clears $3.16 on a closing basis, an extension towards $4.00 is likely.
Considering the overall bearish momentum, I expect FTM to track back to the $2.00 support in the coming sessions and possibly towards $1.50 if Bitcoin is sold aggressively. However, a close above $3.16 invalidates this view.
For more market insights, follow Elliott on Twitter.
This post was last modified on Nov 11, 2021, 06:23 GMT 06:23