Fantom, a decentralized network, wants to register as an alternative to the more expensive Ethereum blockchain. Based on the Proof of Stake mechanism, Fantom has a native token, the FTM, to secure the network.
This token has many roles that we can find at present within multiples blockchains : to have a weight in the governance, pay the costs network, interact with many decentralized applications. The rise in importance of the Fantom blockchain has led the token to rise in value in recent weeks. Let’s go to the screens to analyze its evolution.
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In price discovery against Bitcoin, FTM seeks a second wind
After a former peak at 5903 satoshi on October 28, 2021, FTM entered a downtrend with lower and lower highs and lows. Thus, he returned to his zone of weekly support which I have materialized in grey. After a low point at 2663 satoshis, FTM has resumed in force facing the king of cryptocurrencies, embarking on a new dynamic since the second half of December.
The troughs and peaks being ascending, they materialize a uptrend. Notice that after the break up of the closing level of the old high (5304 satoshis), FTM did a backtrack to confirm this level as a support, in the short term of course.
Currently, what is the situation? The momentum continues, a brand new high was recorded yesterday. Thus, we do not have a signal of exhaustion from buyers. The goal will be a higher top than the previous one to extend the trend. However, it would not be worrying to see a return to 5304 satoshis. As long as the price does not close below this level, there will be no signal for a trend change.
On the other hand, in the event of a sharp break down from 5304 satoshis, we must monitor the gray zone located a little lower (4200/4300 satoshis). It’s a technical level who was in the past a support, as well as a resistance. Therefore, a technical reaction is likely in the event that we have a bearish movement.
A new high approaching against the dollar?
For the analysis of FTM against the dollar, I will focus on the weekly scale to give you the key levels and the challenges of the next few days. After recording an all time high at $3.68, the token entered a downtrend in the same way as the FTMBTC pair by coming to make a wick on its weekly support at 1.142 dollar. Subsequently, the price returned to the rise in recent weeks currently heading to l’all time high that we mentioned earlier.
What is the current goal? Close on the weekly scale above the current close high ($2.86). Thus we would have a brand new high, materializing a takeover of buyers against sellers. Should this scenario materialize, there will be no “major” bulwark left, leaving the door open for a return to $3.68.
On the contrary, in case of failure of the crossing from this level, we would have the signal of a feedback from sellers, which should alert us to a potential slowdown in the uptrend, or even a reversal. If a bearish movement is to occur, the objective will be to maintain the FTM above its weekly support zone at $2.30/2.39 in order to avoid a deeper correction.
Here are the key levels to watch against bitcoin on a daily scale and against the dollar on a weekly scale. It will be necessary to analyze the different closes of the price, how FTM will react to supports and resistances. The next few days will therefore be one to watch closely to know if we should opt for a continuation of the buying momentum or a return of the sellers in order to prevent the recovery of key levels.
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