Fantom (FTM) has shown steady progress towards the $0.50 mark, currently trading at $0.45. This modest increase of 1.4% over the last 24 hours has brought optimism among investors. However, a 13% decline last week has tempered expectations and could delay any sustained recovery, posing challenges for future gains.
Current Market Dynamics
The $0.45 price level is particularly crucial for those who invested between $0.42 and $0.47. Data from the Global In/Out of the Money indicator reveals that over 703 million FTM tokens were acquired within this range, amounting to a total valuation exceeding $323 million. A move towards $0.80 could turn these investments profitable, but this hinges on the price surpassing $0.50 to establish it as a support level. Failure to do so might result in further consolidation between $0.44 and $0.50.
How Does Bitcoin Correlation Affect FTM?
FTM’s recovery is further complicated by its weak correlation with Bitcoin. Despite Bitcoin’s recent surge to $70,000, a level not seen in a long time, FTM’s correlation with BTC stands at only 0.33. This indicates that even a rally in Bitcoin may not necessarily propel FTM, presenting a significant hurdle for investors looking for parallel growth.
Investor Insights
Investors should consider the following:
- Monitor the $0.50 resistance level closely as surpassing it could signal a bullish trend.
- Watch the $0.44 support level; falling below it could lead to a drop to $0.39.
- Factor in FTM’s low correlation with Bitcoin when making investment decisions.
Fantom’s price, although currently above the $0.44 support level, failed to close above $0.50 last week. With fluctuating market conditions, recovery might be protracted. Should the $0.44 level be breached, the price could plunge to $0.39, marking the lowest level for the month. On the flip side, surpassing the $0.50 resistance could negate the bearish trend and unlock profitability for existing supply.