See More

Fantom (FTM) Hits Resistance – Can Price Prevent a 20% Drop?

2 mins
Updated by Ryan James
Join our Trading Community on Telegram

In Brief

  • Fantom price is adhering to the parabolic curve pattern which dictates another 20% correction is possible.
  • A decline is likely owing to the recent selling of 13 million FTM in the span of 48 hours.
  • Investors participating in the network are pulling back, which could weaken the potential for a bullish reversal.
  • promo

Fantom’s (FTM) price action is observing some resistance in its uptrend, with the potential for further decline.

The chances of the cryptocurrency falling by 20% are running since investors aren’t providing much support to FTM.

Fantom Investors Pull Back

Fantom price was doing pretty well for the past month, charting a near 180% increase. However, the last couple of days noted the cryptocurrency declining on the daily chart. While some of this may have to do with the broader market bearish cues, most of it has to do with the FTM holders.

The supply on exchanges noted a sharp uptick in the last 48 hours as the investors moved to sell their holdings. Over 13 million FTM was sold, bringing the total exchange holdings to 657 million FTM.

Fantom Supple on Exchanges.
Fantom Supple on Exchanges. Source: Santiment

This is a clear sign of profit-taking, and this will potentially continue since FTM holders will attempt to secure their gains before Fantom price drops.

Read More: Fantom (FTM) Price Prediction 2024/2025/2030

In the scenario where selling is consistent, altcoins’ prices tend to refrain from declining, provided investors’ participation in the on-chain is high. However, this is not the case for Fantom, as the active addresses on the chain have been declining substantially for the past week.

Fantom Active Addresses.
Fantom Active Addresses. Source: Santiment

A reduction in participation imbalances the supply and demand of the asset, which leads to price falls, which is the likely outcome.

FTM Price Prediction: 20% Decline Ahead?

Fantom price, which was observing a parabolic curve pattern, was expected to observe a correction soon. Per the pattern, a 31% decline was likely, as predicted by BeInCrypto, which is the path that FTM chose.

The altcoin failed to breach the resistance of $1.12 and fell through the support of $1.03. However, the decline is not completed yet as Fantom’s price is vulnerable to additional decline. A 20% drop would bring it to the base 3 level marked at $0.80, which is the likely outcome of the pattern.

FTM/USDT 1-day chart.
FTM/USDT 1-day chart. Source: TradingView

Read More: 9 Best Fantom (FTM) Wallets in 2024

Nevertheless, since the base 3 support range has been tested as resistance before, the Fantom price could test it as support. Bouncing off the upper limit of the support range at $0.88 would enable FTM to reclaim $1.03 as support. This would invalidate the bearish thesis and allow the cryptocurrency to attempt to breach $1.12 again.

Top crypto projects in the US | May 2024

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2t314.png
Aaryamann Shrivastava
As a Mass Media (Journalism) graduate, my journey into cryptocurrency journalism has evolved into a distinguished role as an On-Chain Analyst over the past two and a half years. Collaborating with industry-leading media companies like FXStreet, AMBCrypto, and FXEmpire, I’ve delved deeply into the intricate realms of Crypto and Blockchain, crafting over 2,500 meticulously curated SEO-focused articles. Driven by a commitment to excellence, I remain steadfast in delivering the highest caliber...
READ FULL BIO
Sponsored
Sponsored