Fantom (FTM) Price Analysis: Will the Altcoin Overcome Bearish Signals?
Fantom (FTM) price is currently forming a bullish pattern, but despite the ongoing rally, there are bearish signals to be observed. As a crypto reader, you may wonder if FTM can defy this sentiment and continue its potential 102% increase, or if it will face a 31% correction in the near future.
Crypto Market Bearish Cues Weigh Heavy on Fantom Price
Fantom price has managed to stay above the $1 mark since the beginning of the week. While this suggests that the altcoin may sustain its rally based on historical movement, broader market cues indicate otherwise. One concerning development is the surge in deposits on the network, indicating a shift of tokens from investors’ wallets to exchange wallets. This increase in active deposits suggests that investors are preparing to potentially sell their holdings for profits or to offset losses.
In the case of Fantom, this spike in active deposits indicates that investors may be preparing to sell their FTM holdings for profits. Additionally, the altcoin has a high correlation with Bitcoin at 0.86. High correlations imply that the direction of the larger asset (Bitcoin) will impact that of the smaller one (Fantom). Therefore, Fantom price could end up following bearish cues from Bitcoin, which is currently experiencing a decline.
FTM Price Prediction: What Lies Ahead?
If these bearish cues have an impact on Fantom price, we could see a 31% correction in the cryptocurrency’s value. This prediction is based on the formation of a Parabolic Curve pattern on the daily chart. The pattern confirms its bullish nature when an asset forms three bases on the curve, with the third base typically triggering a rally that can result in significant growth.
According to this analysis, the target price for FTM is set at $1.61. However, if corrections occur, the asset could fall back to the support level established at base 3. Given the rising bearish cues, if Fantom price corrects now, it could experience a 31% correction and test the support range of $0.80 and $0.88.
On the other hand, if Fantom’s price manages to hold above the support line at $1.03, it could invalidate the bearish thesis. In this scenario, a bounce-off from this point would bring FTM back to test the support at $1.11.
Hot Take: Can Fantom Overcome Bearish Signals?
As an investor in Fantom (FTM), it’s crucial to pay attention to both bullish and bearish signals impacting its price. While there are indications of a potential rally based on historical movement and the formation of a Parabolic Curve pattern, there are also concerning factors such as increased deposits on the network and its correlation with Bitcoin.
Considering these factors, it’s important to closely monitor how Fantom price reacts in the coming days. If it manages to defy bearish signals and continue its rally, there is a potential for a 102% increase in value. However, if bearish cues prevail, we may see a 31% correction that could bring FTM down to the support range of $0.80 and $0.88.
Ultimately, it’s essential for investors to stay informed and make well-informed decisions based on market trends and indicators.
Disclaimer: The information provided here is for informational purposes only and should not be taken as financial or investment advice. Always conduct your own research and consult with a professional before making any investment decisions. Cryptocurrency investments are subject to market risk, including the loss of principal.
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