Fantom Price Down 3.5%, Ascending Triangle to Support FTM at $1.90

2022/01/06 13:46:46

The price of Fantom currently trades at $2.18, having plunged over 3.5% during the Asian and early European sessions. Yesterday, FTM/USDT closed at $2.24 after placing a high of $2.60 and a low of $2.17. On the other hand, Fantom's TVL (total value locked) slipped to $10.38b, losing 5.64%.

Despite shaky market conditions, Fantom, one of the leading smart contract platforms, is experiencing rapid growth in its DeFi ecosystem. However, its short-term outlook is pointing to a slight bearish correction.

Do you know what is causing a downswing in FTM/USDT? Keep reading and find out!

Fantom DeFi Ecosystem Thrives

Fantom is on a roll right now. Despite the uncertainty caused by a selloff in the broader crypto market, the blockchain's DeFi ecosystem is expanding massively. According to DeFi Llama, Fantom's 131 DeFi platforms have attracted a total value locked of $10.4 billion, placing the Layer 1 chain second in total value locked (TVL) behind Ethereum.

Fantom is an outlier among leading Layer 1 blockchains, with its total value locked increasing by more than 50% in the last week. The total value locked for other networks such as Ethereum, Avalanche, Solana, and Harmony has plummeted during the same period. The drop in DeFi can partly be attributed to fluctuations in the market.

Total Value Locked within Fantom DeFi Platforms | Source: Defi Llama

ETH and other assets have followed Big Tech stocks into the red in the last week amid fears of a bear market.

Despite a spirited performance, Fantom TVL has plunged 5.5%, dropping from a high of $12.7 billion to $10.4 billion. Thus, it can be one of the reasons to put short-term bearish pressure on FTM/USDT.

Real Bedford Partners with OpenNode

Real Bedford, the world's first football club to operate on the Bitcoin standard, has signed a collaboration with OpenNode to accept bitcoin payments. This payment processing strategy was chosen just a few weeks after Real Bedford revealed its crypto custody strategy.

The Real Bedford FC will be able to accept bitcoins for game tickets online and in person. Merchandise, sponsorship, and exemptions sales at games, thanks to the integration of OpenNode. The club will soon begin paying staff and players with bitcoins.

The news of an alliance between OpenNode and Real Bedford should have boosted BTC prices. But on the other hand, the leading digital currencies remained under pressure and decided to move to the downside. Therefore, altcoins like Fantom are also trading with a bearish bias.

US SEC Pushes the Deadline for ARK 21 Shares Bitcoin ETF

The US Securities and Exchange Commission (SEC) has pushed the deadline for the ARK 21 Shares Bitcoin exchange-traded fund (ETF), which was originally proposed in July 2021.

According to a filing with the SEC on Tuesday, the agency will extend the deadline for approving or disapproving the said ETF. SEC is pushing for additional 60 days, from February 2 to April 3.

According to SEC Assistant Secretary J. Matthew DeLesDernier, extending the SEC's consideration of the proposed rule change was appropriate, allowing the ETF to be listed on the Cboe BZX Exchange. As a result, the news has increased bearish pressure on cryptocurrencies.

Despite a string of negative fundamentals, the market has also seen positive events that have bolstered the cryptocurrency market.

Iran to Test State-Backed Digital Currencies

As per the high-ranking representative of the financial regulator, Iran's central bank digital currency (CBDC) will be piloted in the near future. The news comes four years after the project was first announced.

As stated by Mehran Moharamian, deputy governor for IT at the Central Bank of Iran, digital currencies are a solution for resolving inconsistencies and decentralizing resources. He did not share any specifics about the pilot phase's start date.

Instead, in 2018, Tehran authorities tasked the country's Informatics Services Corporation with developing a "national cryptocurrency." The CBI subsidiary manages the country's banking automation and payment services network. The ongoing talks surrounding Iran's central bank digital currency (CBDC) underpins FTM/USDT price.

Source: Iranian Labour News Agency (ILNA).

In addition to the discussed fundamentals, technical analysis also plays a significant role here. Let's take a look.

Fantom Price Chart on the Daily Timeframe | Source: FTM/USDT

Fantom Price Analysis - Can Ascending Triangle Support FTM at 1.92?

Fantom is trading slightly bearish at $2.16, having taken a bearish turn after being rejected below the $2.60 resistance level. On the daily timeframe, FTM/USDT has formed an ascending triangle pattern. Typically, such a pattern indicates the possibility of an uptrend continuation.

Therefore, Fantom must maintain a support level of $1.92; elsewhere, FTM/USDT can exhibit a sharp downtrend. In addition, the breakout of the $1.92 level can expose the FTM price towards $1.2180. On the bullish side, the FTM/USDT's significant resistance stays at 2.60.

The technical indicators like RSI (Relative Strength Index) and Stoch RSI hold below 50, indicative of a bearish trend. Fantom price analysis highly depends upon a crucial support level of $1.90. Bullish bias dominates above $1.90 and vice versa.

Good luck, fellas. Stay tuned for exciting updates!

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