Fantom (FTM) could soon retest $ 1.90 after gaining 82% in 10 days

The price movement of most large-cap coins in the past few hours has ruined the history of an uptrend across the market. Even the top coins like BTC, ETH, and ADA have seen a 6% to 8% decline. It looks even more frightening on the lower timeframe charts.

Most mid-cap altcoins followed suit, with Fantom (FTM) being one of the hardest hit. FTM hit a record high a few days ago. However, after falling 13%, its future looks uncertain.

Fantom is one of the few altcoins that has done very well in the past few months. Between October 16 and October 26 alone, FTM’s price rose 82%. In fact, it just hit an all-time high (ATH) of $ 3.47 yesterday (October 27th).

However, its immediate correction appears to be similar to Bitcoin’s. From a daily high of $ 3.47, FTM has fallen to as low as $ 2.51. However, it recovered quickly and was trading at $ 3.41 at press time.

FTM. Price table | Source: TradingView

Can FTM drop to $ 1.9?

Well, although the price of FTM has increased significantly in the past few weeks, it should be noted that this increase was not accompanied by trading volume. Such rallies usually don’t last long unless market participants have an optimistic outlook.

So if the downtrend of the broad market continues for the next trading sessions, the price of FTM will keep falling. However, the decline will not be as deep as FTM has three levels of support in and around the $ 2 mark.

Even so, the Open Interest (OI) for FTM futures at press time is still at a high of $ 311 million. This clearly underscores the interest of futures traders in FTM.

Source: ByBt

It should be noted, given the amount of money that has been added to the FTM market during this period, that funding rates remain positive on most exchanges.

As can be seen from ByBt’s chart, the funding rate curves of most exchanges have seen a sharp downtrend in recent trading sessions. However, they managed to stay above the 0% mark.

Only at OKEx is the ratio slightly negative at the time of writing, suggesting that the majority of traders are still optimistic about FTM.

Source: ByBt

So if the bullish sentiment remains intact, the FTM price will continue to rise after the short-term consolidation ends. However, if sentiment changes and becomes bearish, market participants can expect the price to hover around the $ 2 mark in the next few days.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Mr. Teacher

According to AMBCrypto

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