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Are Fantom (FTM/USD) Buyers Exhausted? Watch These Key Levels

Fantom (FTM/USD) had a fantastic weekend, jumping from a low of around 1.95 on October 16 to a high of 2.3 the following day. At the time of writing, the cryptocurrency was trading at 2.2, after retreating from the weekend high.  

Overall, FTM/USD posted 4.73% gains in the past 24 hours, but with a total gain of only 7.04% in the past seven days. The question worth asking is this: Is the bullish run in the FTM/USD now fading?

FTM/USD Boosted by DeFi Launch

Well, on average, FTM/USD has outperformed most of its peers for the past two weeks. For a token that was trading at a low of just 1.2 on October 6, more than doubling to a record high of about 2.45 in only two days is a major achievement.

FTM/USD’s surge has been fueled by the growing popularity of its platform. On October 7, Crypto Briefing reported that the Fantom ecosystem was attracting new users. This followed the successful launch on a borrowing and lending platform by the name of Geist Finance.

Following the launch, FTM/USD surged by 36% in one day, as users exchanged and moved funds into the network, taking the price higher.

However, the latest trading on FTM/USD shows that the crypto token is under pressure at a key level.

FTM/USD – A 4-Hour Technical Outlook

Are Fantom (FTM/USD) Buyers Exhausted? Watch These Key Levels

From the 4-hour chart above, we can see that FTM/USD tested the 2.34 area, and the price was rejected three times. However, the crypto token has also held steady above 1.95. This means that FTM/USD buyers are still relentless, and want to push the price higher, despite the price rejections. But how long can buyers remain in control?

FTM/USD Trade Analysis

Despite price rejections at 2.34, FTM/USD remains strong, as interest in the smart-contract platform grows. According to the Geist Finance platform, the total amount borrowed via the Fantom platform is over $280 million, just two weeks since its launch.

Besides this, the total value locked in the Fantom platform has remained little changed at $117.141 million, since mid-August, which means that FTM/USD buyers are still hanging on, until they find the next trigger to take the price higher.

FTM/USD Trade Idea

With the popularity of Fantom rising due to the Geist Finance launch, we expect more users to continue entering the platform and supporting a rise in prices. Potentially, further launches that cement Fantom as a top DeFi platform will see its price go higher.

Currently, we need to see FTM/USD clear the resistance at 2.34, in order to consider possible sustainable bullish runs. For now, we expect FTM/USD to continue consolidating within the 2.34 and 1.95 range, as long as users continue to flock to the platform and the TVL remains intact. 

I recommend buying at the bottom of the range, as long as FTM/USD remains above the 1.95 support. If prices break above 2.34, we should wait for confirmations via bullish trade signals before entering a buy trade targeting higher levels. Good luck!

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Eric Nkando
Financial Trader and Technical Analyst
Eric Nkando is a professional forex trader and financial analyst from Nairobi, Kenya. He has 3 years trading experience, with interests in Forex, cryptocurrencies, and commodities. He is a CPA(K) holder and a B.com degree (Finance) graduate. Eric’s market analysis and coverage have featured on leading financial websites including Wikifx and Seeking Alpha
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