This article is the latest installment in our series analyzing top altcoins listed on Midas.Investments platform. Today we will look at FTM – the token for the Fantom blockchain. FTM is currently trading at $.39 with a market cap of just over $1 Billion and is ranked #58 on CoinGecko. FTM has taken a beating over recent months as the crypto market has retracted, falling over 90% from its all time high of $3.46. After finding a local bottom at $.20 back in June, FTM has posted nearly a 100% gain. Will this recovery continue, or is FTM destined to retrace further?
Let’s take a look at the charts and find out.
Fantom FTM Price Analysis
First, we start with the 4H candle chart to get an idea of near-term price movements. Looking at our 50, 100 and 200 moving averages, we can see that these are in a bullish configuration (50 > 100 > 200 SMA). The price has also repeatedly tested the 100 SMA, which has held as support on the last two attempts. This support level is currently sitting at just over $.35.
Next we look at momentum indicators – the RSI and Stochastic – to determine how likely FTM is to continue its current trend. The RSI is sitting just above neutral, and is not currently overbought. The Stochastic is also in neutral territory, but is in a downward trajectory, suggesting that consolidation in the near term is the most likely. By near term, we mean the next 4-7 days.
Next, we pivot to our daily candle chart to assess FTM’s market for the medium term. By this, we generally are looking at the next 1-4 weeks. As you can see in the chart above, following a severe selloff in the month of May, the market has found a footing and has begun a slow upward grind. The moving averages are in a bearish configuration, but the price has successfully broken above the 50 and 100 SMA’s. The 50 SMA is actually beginning a slight upward trajectory and is poised to cross the 100 in the next couple of weeks. Over the past two days, FTM has tested and held the 100 SMA as support, currently valued at $.34. This is convergent with the support we saw on the 4H chart, forming a support zone near $.34-.35. The nearest resistance is around the $.60 mark, which was a major consolidation zone approximately one year ago. Above this, the daily 200 SMA will act as resistance at $.93.
Daily momentum indicators also are showing bullish exhaustion, as the RSI is near oversold and Stochastic appears to have found a top. This means that a period of consolidation is needed in the medium term before further recovery is possible.
On the weekly, the 100 SMA will act as resistance at $.81. Flipping this level and holding it as support will be key to FTM resuming any major bull run. RSI is closer to oversold, and Stochastic is still trending upward – meaning that FTM has bullish momentum in the long-term as it recovers.
Fantom FTM Fundamental Analysis
There is a major correlation between search engine volume and the price of FTM. Bittsanalytics aggregates this data into an easy-to-read chart:
When FTM search volume hit an all time high in early 2022, FTM token was also printing an all time high price. In recent months, search volume has decreased to 2021 levels – and so has the price. As FTM begins gaining more attention, the price will follow.
The TVL of the Fantom network shows us how active the chain is, which should also be an indicator of interest in the network. Strong financial incentives drive on-chain value. FTM’s TVL has fallen significantly from nearly $8 billion to approximately 660 million, mimicking FTM’s 90% drop in value. TVL has stabilized at these levels, similar to what we saw in 2021.
Conclusion
FTM has begun to make a recovery after bottoming around $.20 in June. Search engine volume and on-chain TVL have also appeared to find a bottom near levels last seen in 2021. In the near term, the 4H chart looks strong with bullish moving averages and rising support levels. Medium term, FTM is posting bullish divergences but may need time to gather momentum and consolidate before continuing. The weekly looks heavily oversold, and the change in momentum from bearish to bullish is signaled by a rising RSI and the leading Stochastic indicator.
Support Zones:
- $0.34-$0.35
Resistance Zones
- $0.6
- $0.81
- $0.93
Not investment advice. Do your own research.
