I called the Fantom price Crash, and the low: So what now?

Summary:

As predicted, the Fantom price collapsed after breaking the 100-DMA before bouncing 60% from my price target. Here's what I think happens now.

As predicted, the Fantom price collapsed after breaking the 100-DMA before bouncing 60% from my price target. Here’s what I think happens now.

Despite a strong rebound from Saturday’s low, Fantom (FTM) is down around 30% in the last seven days and almost 60% below October’s all-time high. The poor price performance has wiped around $5.5 billion from the DeFi platform’s market cap, which stands around $3.7 billion, ranking Fantom the 41st most-valuable cryptocurrency ahead of Monero.

Several bearish signals emerged recently for the cryptocurrency market. Whilst Fed Chairman Jerome Powell’s changing attitude towards inflation is undoubtedly negative, in my view, over-leverage is responsible for the price destruction. Due to over-optimistic altcoin longs, the threat of a mass-liquidation event was high. Subsequently, on Saturday, Bitcoins 30% intraday-drop triggered a wave of stop-loss selling across the market, collapsing the Fantom price -45% to $1.110.

In my opinion, the most significant danger for holders is if the price closes below the 100-DMA. In that event, the next notable support is the 200-DMA at $1.1093, around 50% below the current level.
Fantom report-Nov 22

FTM Price Forecast

The daily chart shows the Fantom price surged after tagging the 200-Day Moving Average. However, the rally hasn’t recovered the 100-DMA at $1.942, which now offers significant resistance.

Notably, the recent flush has thinned out the leveraged longs, which is constructive overall. However, the immediate technical outlook is bearish. And unless FTM climbs above $1.942, I expect it will remain under pressure, potentially retesting the 200-DMA at $1.117.

The pessimistic view relies on the Fantom price remaining below the 100-DMA. Therefore, a close above $1.942 will improve the outlook and invalidate the bearish thesis.