Here’s what needs to happen for Fantom price to hit $1
- Fantom price shows signs of exhaustion, which is in line with the broader market conditions.
- Investors can expect FTM to revisit $1 if it can reclaim $0.75.
- A breakdown of the $0.61 support level will invalidate the bullish thesis.
Fantom (FTM) price shows signs of recovery after Friday’s sudden crash. If FTM bulls manage to overcome key hurdles, it could trigger a double-digit bounce.
Also read: GMX whales are not hiding anymore, here’s what swing traders can do next
Fantom price eyes recovery
Fantom price sell-off on Friday caused it to slip below the $0.75 daily support level and set up a swing low at $0.65. The 18% crash eventually recovered, leading to a daily candlestick close of $0.77. As long as Bitcoin (BTC) finds a stable support level and plugs the selling pressure, FTM holders can be optimistic.
Assuming there isn’t a BTC-led move to the downside, investors need to wait for Fantom price to reclaim the $0.75 barrier. A successful stabilization above this level could see FTM contest the 0.889 hurdle, which is the midpoint of the 55% crash witnessed between March 22 and April 13.
If the recovery above $0.75 is coupled with the Relative Strength Index’s (RSI) move above the 50 mean level, it would suggest a bullish momentum comeback. Such a development would further promote a move toward the area of interest, extending from $1.01 to $1.04. This uptrend would constitute a 40% gain from $0.72.
Also read: XRP sinks as Ripple moves 200 million tokens, inviting community suspicion
FTM/USDT 1-day chart
Santiment’s Supply Distribution by the balance of addresses shows the 1 million to 10 million cohorts added nearly 8 million in FTM to their wallets in less than a week. These wallets were booked profits around the local top formed on March 22 before Fantom price crashed 55%, showing they were ahead of the markets. Considering that these investors have begun accumulating again could suggest that FTM could be ready for another move to the upside.
 [08.34.17, 08 Jun, 2024]-638534150672821975.png)
FTM Supply Distribution
On the other hand, if Fantom price continues to slide lower, it will encounter the $0.64 to $0.61 area of interest. A decisive daily candlestick close below $0.61 will create a lower low and invalidate the bullish thesis. Such a development could further trigger an 8% crash to the next key support level of $0.56.
Read more: Dogecoin whales could end DOGE’s muted volatility
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
