Cryptocurrencies

FTM Price Analysis: Fantom Cools as Solana Sizzles

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Written By: Elliott Laybourne
Reviewed By: Alejandro Zambrano
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    Summary:
  • The FTM price left many layer-1 tokens for dust last month. However, in November, the SOL token leads the race as Fantom reverses.

The FTM price left many layer-1 tokens for dust last month. However, in November, the SOL token leads the race as Fantom reverses. Fantom (FTM) is last at $2.639 (-1.3%), a 7-day loss of 20%, and whopping 15,000% year-to-date. However, FTM’s market cap has dropped $2 billion to $6.7 b over the last week, ranking Fantom the 32nd most valuable cryptocurrency behind Ethereum Classic (ETC).

Fantom belongs to a group of layer-1 blockchains like Solana (SOL) and Avalanche (AVAX) that pose a potential threat to Ethereum (ETH). Fantom is gaining considerable traction in the Decentralized Finance (DeFi) arena. According to Defillama, it is currently is the 7th most-utilised DeFi blockchain with a Total Value Locked (TVL) of over $5.45 billion.

The so-called Ethereum-killers have attracted colossal interest recently as investors rush to pick the winner in the race for Ethereum’s number-one spot. In October, the FTM price surged 138% to a record $3.689. However, it’s been Solana’s time to shine ever since. As of today, FTM has retreated almost 30% from last month’s high. Whilst at the same time, Solana is printing a record price of $248.

Fantom Price Forecast

Looking at the 4-hour chart, we see that Fantom is trending lower. Notably, the former all-time high of $2.466 offers significant horizontal support. However, the FTM price is below 4-out-of the 5 displayed short-term moving averages, indicating bearish momentum.

For Fantom to regain upside traction, it must first clear the November 1st high at $2.933. In that event, an extension towards the all-time high at $3.488 is likely. In contrast, a drop below $2.466 opens the door for a slide towards the $2.000 level.

Considering the bearish momentum, a test of support is the odds-on favourite. However, as we saw on the 27th of October, the price bounced sharply after testing the level. On that basis, I am cautiously bullish above $2.466. However, a close below that level invalidates the optimistic view.

FTM Price Chart

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This post was last modified on Nov 04, 2021, 12:32 GMT 12:32

Written By: Elliott Laybourne
Reviewed By: Alejandro Zambrano

Elliott Laybourne is an accomplished Hedge Fund sales and Investment bank trading specialist. Elliott also started a successful Base Metals Brokerage business in partnership with ABN AMRO clearing bank. He worked on the open outcry trading floors at the London International Financial Futures Exchange 'LIFFE' and the London Metal Exchange 'LME.' He also provided research and execution services for Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and Pennsylvania State Public School Employees Retirement System, as amongst others. Today, he focuses on providing trading consultancy and business development services for family office and brokerage clientele.

Published by
Written By: Elliott Laybourne
Reviewed By: Alejandro Zambrano