Fantom has been in the crypto space since late 2018, when it was relatively young for DeFi based cryptocurrencies. It took Fantom blockchain almost two years to make its presence in the DeFi space leading to a massive boom in its market capitalization from $0.01648 in January 2021 to a peak valuation of $3.68. It thus delivered returns of over 200 times in less than a year. Hence, when it comes to comparison amongst other leading DeFi projects, Fantom has made a considerable market presence. It currently holds 40th rank with a market capitalization of over USD 3 billion. On top of it, almost 80% of the entire FTM supply is already under circulation.
Fantom developers claim their in-house developed crypto token FTM addresses the shortcomings of modern digital tokens with a high transaction speed. One transaction through FTM barely takes two seconds to complete. This layer-1 blockchain uses a newly developed consensus mechanism called Lachesis to support smart contracts, while the other end of its protocol is named Opera. Opera, on the other hand, uses a POS algorithm and leaderless validation system. FTM has now become a dual-purpose token for the Fantom blockchain, serving as a tool to secure its ecosystem while also enabling the holder with the capacity of using their FTM as a governance token to vote on development work proposed for its growth and sustainability.
FTM Price Analysis
A 42% fall in just one month has had a huge impact on the trading psychology of modern crypto investors. With a huge losing market capitalization, investors are not taking a step back into their aggressive portfolio expansion. Can FTM revive investor sentiment, or will it succumb just like other hype coins? According to recent price momentum and Fantom crypto price prediction, it is clear that FTM is facing stiff resistance at a higher value. With every bounce back, the profit booking sentiment increases.
Considering a buying sentiment to revive around its historical support levels, FTM should bounce back in the days to come. It has already declined close to 65% since its November 2021 peaks. This fall was expected as FTM was trading at a whopping 185% above its 200 DMA, which is something unsustainable in the long run.
On the other hand, breaching its 200 DMA resulted in losing a large chunk of its market capitalization in a small time frame. Bounce back as by Fibonacci retracements could be in the range of 40% to 70%. Since FTM doesn’t rely on hype to enhance its market capitalization and instead offers a host of features and support technologies.
The current price trend sits in tandem with the RSI value dipping to the oversold zone. While an RSI below 40 is considered a negative indication, it also presents an opportunity for buyers to take advantage of this situation. For FTM to showcase a positive outlook, it has to breach the $2 mark in the coming months. On the flip side, FTM can further fall 20-30% if buyers fail to take control of the price trend.