Fantom's Future in Doubt as Resistance at $0.80 Dampens Bullish Outlook

Fantom (FTM) confronts resistance at $0.80, potentially leading to a decline towards $0.50. On-chain data reveals a balanced investor sentiment, while the MACD golden cross suggests a possible bullish trend. However, the price struggling to break $0.80 and a potential Elliott Wave pattern necessitate further observation. Support at $0.70 is crucial, as a break below could indicate a bearish reversal, whereas a rebound from this level would strengthen bullish expectations.

Fantom Faces Uncertain Future as Price Encounter Resistance at $0.80

Fantom (FTM), a popular blockchain platform known for its speed and scalability, has encountered a setback in its recent upward trajectory, raising concerns among investors about its future prospects. The token's price has struggled to break through the $0.80 resistance level, leading to speculation that it could potentially fall to $0.50.

On-Chain Data Reveals a Mixed Sentiment

On-chain data from IntoTheBlock provides insights into investor sentiment towards FTM. The data indicates that the market is evenly split, with approximately 49.76% of investors currently in profit and 48.32% at a loss. This neutral sentiment is further supported by the observation that nearly 2% of investors are "at the money."

Transaction Statistics Suggest Declining Interest

However, the transaction statistics paint a slightly different picture. The number of daily transactions on the Fantom network has seen a significant downtrend, falling from a peak of 1,130 on April 12th to just 462 on April 25th. This decline could indicate diminishing interest in the platform.

Price Analysis Hints at a Potential Uptrend

From a technical analysis perspective, FTM's price has exhibited a bullish trend since October 2023, reaching a yearly high of $1.20 in March. However, it subsequently underwent a downturn, leading to a 55% decline to a low of $0.56 on April 13th.

The recent price action suggests that FTM may be in the midst of a corrective stage, with the three-wave move following a five-wave uptrend. The subsequent 38% increase to a high of $0.80 on April 21st supports this assumption.

Encouragingly, the Moving Average Convergence Divergence (MACD) has formed a golden cross on the daily chart, a bullish signal that often indicates the start of a larger uptrend. Additionally, FTM's price has managed to maintain a higher price point than its assumed wave 1 peak on December 26th, 2023.

Cautionary Signs Emerge

Despite these positive indicators, there are some signs of caution. FTM has struggled to surpass the $0.80 resistance level over the past four days, falling to a low of $0.70 on April 25th. This level of resistance could prove significant in determining FTM's future direction.

$0.70: A Pivotal Level

According to the Elliott Wave Principle, the price should not enter the territory of wave one during its fourth wave. Currently, the $0.70 level falls below the territory of wave one. If the price falls below this level, it would invalidate the possibility of a starting five-wave impulse and turn the projection bearish, potentially leading to a further decline towards the $0.50 mark.

Conversely, if the price finds support at $0.70 and makes a higher high, it would validate the bullish count, suggesting that FTM has ended its ABC correction from its March peak. In this scenario, FTM would have established a low on April 13th and demonstrated the strength to rebound.

Disclaimer

It is important to note that this article does not constitute financial advice. The information provided is the author's opinion only and should not be considered as investment recommendations. The cryptocurrency market is highly volatile and prone to occasional arbitrary movements. Investors, traders, and other crypto users should always conduct thorough research and consult multiple sources before making any decisions.