FTM Price Forecast: Downtrend Dominates after Bullish Breakout Fails

Summary:

This article analyses the FTM price action and discusses the technical levels that could dictate Fantom's direction.

This article analyses the FTM price action and discusses the technical levels that could dictate Fantom’s direction.

Aside from a spike higher at the start of the month, Fantom (FTM) trended lower for most of November, finishing around 40% below the October all-time high. In that time, the layer-1’s market cap dropped from just under $9 billion to approximately $5.4b today. As a result, Fantom is losing ground against rivals and sliding down the crypto rankings. A week ago, Fantom was the 35th most valuable cryptocurrency, but at the current valuation, FTM places 40th, behind The Sandbox.

This morning the crypto market is lower after Jerome Powell doubled down on his hawkish statements last night. Subsequently, risk assets are softer across the board, exerting downward pressure on the FTM token. And in my opinion, even after the recent weakness, the Fantom price looks heavy and vulnerable on the downside.

Fantom Price Analysis

The daily chart shows a descending trend line from the October high caps the FTM price at $2.29. Notably, the failed attempt to clear the trend on the 25th now reinforces its dominance.

Below the market, the 100-DMA at $1.90 combined with the November low of $1.75 provides confluent price support. I think the most significant danger for longs is if the price drops below $1.75. In that event, FTM could slide towards trend line support around $1.20.

As long as the FTM price is below trend resistance, lower looks likely. On that basis, I maintain a bearish view, initially targeting $1.75 and potentially lower (if a broader risk-off occurs). However, a close above $2.29 invalidates the pessimistic outlook.