Fantom has recorded a price decline over the last 24 hours, falling by 15.59% to $0.6592. This drop comes amid a broader market correction, though its long-term price action still presents a potential for future recovery.
Looking at Fantom’s weekly chart, the asset is nearing the apex of a long-term symmetrical triangle formation. This suggests that a price move is on the horizon.
The symmetrical triangle indicates a period of consolidation. During this time, price movements have been confined between a clear support level near $0.60 and resistance around $1.80. A breakout above the upper boundary could trigger a rally, with key targets at $1.20 and $3.05.
The gradual rise of the 50-period moving average (MA 50) further supports the notion of an upward trend, indicating that momentum may shift in favor of the bulls if the resistance is successfully breached.
However, a retest of the breakout point will be necessary for confirmation, allowing traders to assess whether the new support is firmly established.
Market decline and support levels
Despite the positive long-term outlook, Fantom’s price has been under pressure recently, reflecting broader market conditions.
Over the last 24 hours, Fantom dropped from approximately $0.78 to $0.66, marking a steady downtrend without any immediate reversal. At the time of writing, trading volume has also decreased by 18.7%, with total volume standing at $338.67 million.
However, Fantom’s market capitalization remains strong at $1.84 billion, supported by a circulating supply of 2.88 billion Fantom tokens, with a maximum supply capped at 3.17 billion.
Fantom technical indicators point to potential reversal
In the short term, Fantom shows mixed signals from its technical indicators. The Relative Strength Index (RSI) is currently at 25.81, placing it in oversold territory. This suggests that selling pressure may soon dissipate, potentially leading to a price bounce. The MACD, on the other hand, paints a bearish outlook, with the MACD line below the signal line and a negative histogram, signaling ongoing selling momentum.
If the RSI points to oversold levels and the MACD bearish pressure zone, the price could dip lower before touching significant support levels. If the price stabilizes and begins moving in the reverse direction, it could signal a short term up move or a long term breakout from the symmetrical triangle.
