Fantom Defends Crucial $0.50 Support: Will It Break Through Downtrend Resistance?

The recent surge in meme coins has taken a breather, allowing altcoins from various segments to emerge. Notably, AI tokens have garnered attention, and now, DeFi tokens are also in the spotlight. 

Fantom (FTM) has seen a resurgence, drawing interest from sideline traders. This renewed demand has sparked speculation about whether Fantom can surpass the $1 mark, especially as it defends the crucial $0.50 support level despite struggling to breach local downtrend resistance.

As per Crypto Rand, an analyst, the price trend of Fantom against USDT on a daily timeframe reveals intriguing insights. From March to April, Fantom experienced a significant uptrend, peaking in late April. 

This uptrend was followed by a notable correction and consolidation phase from May to June. During this period, the price oscillated between a resistance level around $0.75 and a support level at $0.65. However, in June, the price broke down from this consolidation range, signaling a bearish trend.

Currently, key resistance levels for Fantom include $1.10, which marks a strong resistance from a previous price peak, $0.95 as intermediate resistance from the prior consolidation phase, and $0.75, which has now turned into resistance after previously acting as support. On the support side, the levels to watch are $0.65, previously a consolidation support turned resistance, $0.51 as the current support level based on recent price action, and $0.36 from previous price activity.

A descending triangle pattern appears to be forming, with horizontal support around $0.51 and a descending resistance line. Notably, there has been a noticeable increase in volume during significant price movements, particularly during the early 2024 uptrend and the June 2024 downtrend. 

The price breaking below the $0.65 mark and sustaining below it confirms a bearish outlook. The immediate support level is around $0.51, and if the price drops below this, the next support level to watch is around $0.36. For a potential bullish reversal, reclaiming the $0.65 resistance level is crucial.

As of press time, Fantom’s live price is $0.5808, with a 24-hour trading volume of $181,285,515, marking a 0.11% increase in the last 24 hours.