- Fantom price faced a rejection to fall nearly 30% as a breakout proved premature.
- FTM could drop 25% to provide another buying opportunity around $0.6467 as broader markets dump.
- Invalidation of the bearish thesis would occur upon a break and close above $1.2350.
Fantom (FTM) price was not an exception on Tuesday, dumping alongside the rest of the cryptocurrency market. With altcoins taking their cues from Bitcoin (BTC) price, the only difference is that even if the pioneer cryptocurrency started to correct, and with it FTM price, the altcoin would only be attractive if it completed its downswing.
Also Read: Fantom price set to revisit $1.77 as co-founder teases new achievements for the FTM blockchain
Fantom price likely to make a healthy 25% drop
Fantom price is down around 30% after a rejection from the $1.2350 resistance. The bold uptrend was cut short as the breakout proved premature. Amid an ongoing reversal, Fantom price could drop 25% to $0.6467 before the bulls pounce at FTM again.
Multiple technical indicators support the odds for further downside momentum, starting with the nose-diving Relative Strength Index (RSI) that showed falling buyer momentum. The volume indicator is also in the red, a sign of a growing bearish sentiment.
If the $0.6467 support fails to hold, the Fantom price could test the supply zone (turned bullish breaker) that extends from $0.4597 to $0.6081. A break and close below its midline of $0.5346 would confirm the continuation of the downtrend likely slipping below the $0.4000 psychological level.
FTM/USDT 3-day chart
Based on the position of the RSI above 50, coupled with the positive Awesome Oscillator (AO) histograms, FTM bulls still have a play in the market. If this trader cohort buys the correction at rates around $0.8000, the recovery rally could come sooner than expected.
A decisive candlestick close above $1.2350 on the three-day time frame would invalidate the short-term bearish thesis.
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