Fantom (FTM) has been on fire over the past few months, but has taken a solid dip like much of the rest of the crypto asset space in the past session. Will buyers take this as a buying opportunity?
Today we’re checking out Fantom (FTM), the native token of the Fantom blockchain, an up-and-coming smart contract platform. It’s gained traction in the DeFi space in terms of total value locked (over $5B) and the price of FTM/USD rallying from roughly $0.25 at the beginning of August to yesterday’s high under the $3.50 handle.
So the momentum is definitely in favor of the bulls, and the volatility is likely to stay high as the Fantom Developer Conference kicked off this week. These types of events are ones to watch for potential fresh catalysts as new partnerships, exchange listing, platform updates may be announced. Obviously, given that the event is by Fantom, the announcements will likely be positive for FTM, so the odds are pretty good we could see a return to the upside momentum.
We’ll be waiting to see what comes out of this event, and if the announcements look positive for the future of the Fantom Foundation, then the current pullback may be attractive to both fundamental and technical buyers, especially with FTM/USD recovering so quickly from the sharp dip to the 61% Fib / previous resistance area around the $2.50 handle.
We should also consider a “buy-the-rumor, sell-the-news” scenario with this event, meaning some traders may start to take profit after positive news announcements. As long as we don’t see anything extremely negative from the crypto space and broad risk sentiment remains relatively positive on the pandemic recovery, then any future dips may remain potential buying opportunities.
Of course, if broad risk sentiment does shift on negative catalysts or the crypto space continues to be pulled lower by bitcoin price action, then a move lower could find enough momentum to break the Fibs and potentially take FTM back to the $2.00 handle.
What do you all think? Is FTM/USD a buy on the dip? Or are we gonna see a topping pattern form in the market very soon? Let me know in the comments section below!
Let me know in the comments below, and as always, remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly. Create your own ideas and don’t simply follow what I do.