Is it a Good Time to Buy Fantom (FTM) Amid Price Correction?

Fantom FTM

Fantom (FTM) price has remained below the $1 mark since the start of the month, signaling a downtrend. Yet, there’s potential for recovery if investors accumulate FTM.

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Despite the downtrend, Fantom’s price shows signs of a potential breakout, backed by increased investor participation. The Price DAA divergence indicator suggests a buying opportunity, alongside the MVRV ratio signaling favorable conditions for investment.


Fantom’s Price Outlook: On-Chain Signals and Investor Actions

The trajectory of Fantom’s price hinges largely on two factors: broader market movements and investor behavior. While recent days saw market cues driving the price, the next sessions are anticipated to be influenced by investor actions.

On-chain indicators are flashing bullish signals, indicating potential buying opportunities. Notably, the Price-Daily Active Addresses (DAA) Divergence stands out as a strong indicator. This metric highlights a disparity between cryptocurrency price movements and the number of active addresses transacting daily on the network.

Fantom Price DAA Divergence. Source: Santiment

Market Value to Realized Value (MVRV) Ratio Supports Buying Sentiment

Additionally, the Market Value to Realized Value (MVRV) ratio provides further support. Currently, Fantom’s 30-day MVRV ratio sits at -27%, indicating investor losses. However, historical data suggests that MVRV ratios between -12% to -27% often precede rallies, marking it as an accumulation opportunity zone.

Fantom MVRV Ratio. Source: Santiment

If investors seize the opportunity to acquire Fantom at its current low prices, it could provide a significant boost to the altcoin’s prospects.

Fantom’s Price Prospects: Breaking Downtrend Resistance

Fantom’s price trajectory hinges significantly on investors’ accumulation, which could pave the way for a breakout from the current downtrend. The altcoin may surpass the trend line, aiming to test the resistance range situated between $0.80 to $0.88. This range has historically served as both support and resistance levels over the past few weeks.

Potential Scenarios for FTM Price Movement

If Fantom successfully breaches this resistance range and converts the upper limit into a support level, it opens the door for a potential rally towards the $1 mark, aiming to recover some of its recent losses.

FTM/USDT 12-hour chart. Source: TradingView

However, in the event of a failed breach, Fantom’s price could retract, testing the $0.63 level as a support. Should this support falter, it would invalidate the bearish outlook, potentially exposing FTM to further downside pressure below the $0.60 mark.


Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

 

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  • Asad

    Asad is a dynamic and talented cryptocurrency content author who brings a wealth of knowledge and enthusiasm to every article. With a deep understanding of blockchain technology and a passion for digital assets, Asad's writing is both informative and engaging.

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