Fantom price has given up on a six-week aggressive push to reach $1.00. The layer 1 protocol popularly known for its exemplary scalability features, reached 2023 highs of $0.6560 before correcting the uptrend to trade at $0.5513 at the time of writing. Despite this pullback, FTM is up 148% in the last 30 days and 44% in two weeks.
The retracement from Fantom price new 2023 high is in danger of stretching to tag potential support at $0.40 before bulls take back the reins. According to experts in the crypto industry, the declines seen across the market were expected following the United States Federal Reserve (Fed) decision to hike interest rates by 0.25% last week.
Furthermore, the US jobs report last Friday did not meet market watchers’ expectations, suggesting inflation was still a glaring issue the regulator must continue to deal with in the coming months.
While the FOMC meeting early last week pointed to a possible disinflationary approach, the US payrolls report quickly stifled any chances of the Fed completely removing pressure on monetary policies used to combat inflation.
How Far Will Fantom Price Go to Find Support?
Fantom price continues to face increasing overhead pressure from the stubborn resistance at $0.6560, with three consecutive red candles printed on the daily chart. Declines are on the brink of exploding as the Moving Average Convergence Divergence (MACD) indicator hints at flashing a sell signal.
Traders looking forward to shorting FTM and capitalizing on a glaring price drop to $0.40 must wait until the MACD line in blue flips below the signal line in red. Sellers would have a field day if the momentum indicator crowned the sell signal with movement down to the mean line, and possibly entering the negative region.
Short-term price analysis reveals tentative support at $0.40, slightly above the 50-day Exponential Moving Average (EMA) (in red) and the 200-day EMA (in purple). Bulls are expected to arrest the losses above this demand area and push for the resumption of the uptrend.
Fantom Price Flaunts a Golden Cross – Is A Rebound in The Offing?
A golden cross pattern recently appeared on the above daily time frame chart, insinuating that Fantom price had finally validated a long-term uptrend. This manifests when the shorter-term 50-day EMA moves above the longer-term 200-day EMA.
Note that Bitcoin price often launches significant upswings following the formation of a golden cross, with some going ahead to support rallies to new all-time highs. Therefore, bullish traders are hopeful that Fantom price can do the same, with gains not stalling at $0.6560 but starting the second recovery phase above $1.00.
“Most instances of a golden cross have resulted in favorable returns for Bitcoin, and many have occurred at critical long-term inflection points,” Sean Farrell, Fundstrat Global Advisors’ digital-asset strategy head, said via a note to Bloomberg.
Fantom price may have exhausted the pullback based on the four-hour time frame chart. As observed, the Stochastic oscillator is already oversold, as it holds below 20.00 from the overbought area – above 80.00.
The 50-day EMA currently provides FTM price with the much-needed support that could see the token quickly reclaim highs above $0.6560. Traders can place buy orders slightly above the ascending trendline but keep them inactive until a breakout occurs.
In case Fantom price upholds declines below the 50-day EMA and the rising trendline, investors could start acclimatizing to the leg stretching to tag at $0.50. If push comes to shove, traders will revert to the daily time frame analysis, forecasting a drop to $0.40 before recovery begins.
Introducing The New Fantom Virtual Machine
The newly launched Fantom Virtual Machine (FVM) has the potential to process over 400 million transactions per day. This figure is essentially four times the number of transactions processed by Visa in the United States.
According to a recently published blog post, this ambitious projection followed the transition from the Ethereum Virtual Machine to FVM. While bringing the new system to life, developers focused on increasing the speed of execution on Fantom.
Other developers within the ecosystem have been told not to worry because Solidity is the language used and is compatible with Vyper, allowing seamless transition.
“The Fantom Virtual Machine uses dynamic translation, where the code is translated into a more efficient instruction format inside the client, allowing for more efficient execution of the smart contract,” the team outlined on the Fantom blog.
Fantom is establishing itself as a go-to next-gen layer 1 blockchain. The protocol appeals to developers looking for a higher transaction throughput supported by speed and low fees. The value of FTM is expected to grow in tandem with the ecosystem, especially with the crypto market looking bullish for 2023.
Buy Fantom Now.
Fantom Alternatives to Buy Today
Before you invest in Fantom, you may want to consider other high-potential crypto projects alongside FTM.
We’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
Related Articles:
Credit: Source link
