Fantom was built on the back of ICO funding by raising over USD 40 million in 2018. The advantage of this development was its core technology didn’t utilize the actual blockchain process but rather a more recent technology iteration as a Directed Acyclic Graph to provide smart contract services.
With the intended beneficiaries being Decentralized finance sectors that heavily rely on smart contracts the outlook for Fantom was immensely positive during 2020 and 2021. With the validation process being proof of stake with slight modifications named Lachesis, the technical superiority presented by this token was beyond expectations.
With the recent decline in crypto trading and related application activity, FTM succumbed to under $1 billion value and slipped to the 66th rank as per market capitalization. As the prime developer Andre Cronje quit in April 2022, the announcement of closing 25 applications created a huge decline in demand for FTM, creating a major downturn that continues to the last date. While there have been incisions that he is returning to Fantom the recent gains can surely be associated with news rather than fundamental reasons.
Fantom (FTM) Price Analysis
Fantom token has moved for a new positive breakout heading toward the revered and challenging 200 EMA. It would be the first time since April 2022 that this token has reached such proximity to 200 EMA, indicating a price reversal possibility based on our FTM coin price prediction. Spiking transaction volumes are projecting the initiation of a new trend in the coming days.
Fantom’s downtrend and decline took support from $0.16 on numerous intervals but failed to transition the movement towards positive action. The rejection and sentiment change created because of the FTX debacle have hit the price movement hard. But FTM displayed the confidence of investors as buyers hoarded for acquiring more tokens at the support level of $0.16, resulting in a rise of 30%. The consistent gains made over the last few days have strengthened investors’ belief in this token.
From a technical perspective, we can ascertain this positive action to continue as RSI has reached close to overbought zones. Simultaneously, the MACD indicator has also marked a bullish crossover and it is moving stronger with the seventh positive candle being created so far. The day has already entered positivity with a gain of 7% within the first few hours.
On Weekly charts, the decline and timing of the events confirm the overall negative across cryptocurrencies to be a dominating factor in creating downtrends. Since this token has been the worst hit token of 2022, with a decline from peak value to above 95%, the expectation of a complete turnaround would be daydreaming, but there can be a gain of 200 to 400% from the latest trading value. On long-term candlestick patterns, RSI has witnessed a renewed buying spike, with MACD waiting for a positive breakout.