Originally published on: February 05, 2023
The price of Fantom (FTM) is facing a potential setback after a remarkable five-week winning streak. Could FTM lose 35% of its value in the near future?
Fantom’s price surged by an impressive 230% in just five weeks, reaching $0.61 by February 5. This surge outpaced many other cryptocurrencies, largely thanks to the anticipation surrounding Fantom’s layer-1 blockchain and the developments by co-founder Andre Cronje.
Cronje recently outlined ambitious goals for the Fantom ecosystem in 2023, including significant revenue-sharing opportunities for decentralized app developers. This announcement spurred FTM’s price on a continuous upward trend for five weeks.
Despite FTM’s recent gains, there are signs of potential trouble ahead. A bearish divergence has appeared between FTM’s price increase and its declining momentum. This mismatch suggests that the upward momentum may be slowing down.
Technical analysis indicates that FTM could experience a significant correction, possibly dropping by 35% to $0.42. This level has historically served as resistance and could now act as a support level. A further decline could see FTM’s price approach the 200-day Exponential Moving Average (EMA) at $0.38.
While short-term price action remains uncertain, Fantom’s overall bullish bias will likely hold as long as it stays above key support levels. Investors and traders should keep a close eye on FTM’s price movements and conduct their own research before making any investment decisions.
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