The Fantom (FTM) price has increased significantly over the past two days. However, it has yet to reclaim a crucial horizontal level which would indicate that the trend is bullish.
On Nov. 28, Andre Cronje published a Medium thread detailing the financial history of Fantom.
The article describes the entire financial history of the Fantom blockchain, from June 2018, when they raised $40,000,000 in Ethereum (ETH) until Nov. 2022, a time when they have more than $100,000,000 in stablecoins, $100,000,000 in cryptocurrencies and $50,000,000 in non-crypto assets. With the current salary burn, they have a 30-year runway.
The main takeaways from the article are:
- Fantom rejected numerous attempts at exchange listing and influencer marketing.
- They aggressively pursued decentralized finance (DeFi) solutions. Most of the yield farming was done in Compound (COMP) and Synthetix (SNX). Yearly, Fantom earns roughly $6 million from its DeFi strategies.
After the article came out, the FTM price increased by 20%. Other tokens in the Fantom ecosystem such as SCREAM and GAINS have also seen sharp increases.
Fantom Price Bounces After Bullish Divergence
The price action from the daily time frame shows that the FTM price has fallen since reaching a high of $0.315 on Nov. 5. The fall was sharp, leading to a low of $0.164 on Nov. 22.
The Fantom price has increased since, preceded by bullish divergence in the RSI (green line). The rate of increase significantly accelerated over the past 24 hours. The RSI is now above 50, a sign of a bullish trend.
However, the Fantom price was rejected by the $0.22 horizontal resistance area (red icon).
Despite the bullish RSI, the Fantom price prediction is considered bearish until it reclaims the $0.22 resistance area.
Crucial Long-Term Level Could Determine Trend
The technical analysis from the weekly chart reiterates the importance of the $0.22 area. Currently, the FTM price has decreased below the area. A similar drop occurred in July 2021 (green circle). But, after the Fantom price reclaimed the area, it began a sharp upward movement that led to a new all-time high.
As a result, if a reclaim occurs, a similar increase could occur. This is also supported by the weekly RSI, which has generated bearish divergence (green line).
However, there is virtually no support below the current price until $0.04. Therefore, if a rejection happens instead, a very sharp downtrend could be in store for the future price.
As a result, the Fantom price forecast can be considered bullish if the FTM price reclaims the $0.22 area. Conversely, if it gets rejected, it is possible that a sharp fall towards $0.04 will transpire.
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