Is Fantom on the brink of recovery after retesting its yearly lows? This is the question on many minds as the cryptocurrency continues to navigate a volatile market. Fantom (FTM) has been grappling with its yearly lows since mid-July, an occurrence that has sparked interest among bullish traders. However, the path to recovery may not be as straightforward as it seems.
Understanding Fantom’s Current Market Position
Fantom’s price levels have been a point of critical interest, especially for bullish traders. FTM has sunk to yearly lows below $0.26, and historically, it has seen a corrective rebound at these levels during similar retest periods in 2021, 2022, and 2023. Despite this pattern, certain dynamics and developments could potentially delay FTM’s corrective rebound.
The native Fantom ecosystem’s resident DeFi projects, such as Curve Finance [CRV] and SpiritSwap, recently suffered from cyber attacks. Even though Binance Labs stepped in to salvage Curve Finance through a strategic agreement to expand to BNB Chain, SpiritSwap had to cease operations.
What’s Next for FTM?
Looking at the daily chart, FTM has historically shown corrective rebounds whenever it hits the yearly lows. This demand zone ($0.17 – $0.26), also acts as a bullish order block on the monthly chart, and it could continue to serve as a strong bullish stronghold.
However, the recent retest of the bullish zone in mid-June set FTM on a trajectory to push above $0.3, but it faltered at the daily bearish order block ($0.32 -$0.33). The daily bearish OB has so far prevented any further upside since mid-June. At the time of writing, FTM has retreated to the yearly lows and monthly bullish OB again.
Market Dynamics and the Role of Sellers
According to crypto derivatives platform Coinalyze, the Cumulative Volume Delta (CVD) has been trending downwards since late July, reinforcing that sellers have had a firm grip over the same period. Open Interest rates have also fluctuated between late July and August, swinging between $50 million and $60 million. This suggests that demand for the asset has plateaued in the derivatives market, which could delay a solid corrective rebound.
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In conclusion, while Fantom retests yearly lows, it is clear that the road to recovery may not be smooth. The influence of sellers and market dynamics, coupled with developments within the Fantom ecosystem, could significantly shape the course of this cryptocurrency.
