Fantom (FTM) Shows Signs of Recovery After Sudden Crash: Report

Fantom (FTM) shows signs of recovery after a dramatic price plunge on Friday. The sudden sell-off saw FTM slip below the critical $0.75 daily support level, establishing a swing low at $0.65. Despite the 18% crash, FTM rebounded, closing the day at $0.77, sparking cautious optimism among investors. As of press time, FTM is trading at $0.7066, indicating a significant decline of 13.19% in the last 24 hours.

The recovery prospects for FTM largely hinge on the performance of Bitcoin (BTC). If BTC stabilizes and mitigates selling pressure, FTM holders could remain hopeful for a sustained upward trajectory. For FTM to cement its recovery, it must reclaim and stabilize above the $0.75 barrier. A successful stabilization above this level could enable FTM to challenge the $0.889 resistance, the midpoint of the substantial 55% crash witnessed between March 22 and April 13.

Technical indicators are aligning to support this bullish outlook. A recovery above $0.75, coupled with the Relative Strength Index (RSI) moving above the 50 mean level, would signal a resurgence of bullish momentum. This development could drive FTM toward the target range of $1.01 to $1.04, representing a potential 40% gain from the current level of $0.72.

Supporting this optimistic scenario is data from Santiment, which shows increased accumulation by significant holders. Wallets holding between 1 million to 10 million FTM have added nearly 8 million tokens in the past week. These cohorts had previously booked profits near the local peak on March 22 before the 55% crash, demonstrating their market foresight. Their renewed accumulation suggests confidence in an upward movement for FTM, indicating that significant investors are positioning for a potential rise.

Should FTM fail to maintain its recovery, it could face further declines. The critical area of interest lies between $0.64 and $0.61. A decisive daily close below $0.61 would invalidate the bullish outlook and potentially trigger an additional 8% drop to the next support level at $0.56.

Investors are advised to monitor these key levels closely as FTM navigates this period of high volatility. The coming days will be crucial in determining whether Fantom could sustain its recovery or succumb to further downward pressure. The market’s reaction to BTC’s stability and FTM’s ability to overcome resistance levels will be pivotal in shaping its near-term trajectory.