Fantom (FTM) is showing mixed signals as it tries to recover from recent declines. Although the price has increased 3% over the past 24 hours, it is still down nearly 20% over the past week, indicating continued challenges in overcoming bearish momentum.
FTM’s difficulties are compounded by broader market uncertainty and a significant decline in whale activity. With the price hovering near key support levels, its further direction will largely depend on the ability of buyers to regain control and trigger a sustained recovery.
FTM’s downtrend is still strong
The Average Directional Index (ADX) for Fantom fell to 31.4, from 36.9 a day ago. ADX is a technical indicator that measures the strength of a trend, whether bullish or bearish, on a scale of 0 to 100. Values above 25 indicate a strong trend, while values below 20 indicate momentum weak or non-existent.
The recent decline in FTM’s ADX reflects the weakening of the previous downtrend, suggesting a potential transition to a consolidation phase rather than a continuation of bearish momentum after the FTM price corrected around 20% downward. in the past 7 days.
At current levels, ADX shows that although the strength of the downtrend is fading, FTM has not yet established a clear direction. This shift could mean reduced volatility and also an opportunity for markets to stabilize. If Fantom can maintain this trend, it could signal the start of a rally or range trading.
However, without an increase in buying activity or stronger momentum, the price may continue to hold in a consolidation phase, waiting for other catalysts to determine its next direction.
FTM whales escape their location
The number of wallets holding between 1 million and 10 million FTM has dropped significantly, to just 69 from a monthly high of 84 on January 3. Monitoring the behavior of these whales is important, as the number Their large holdings often influence market sentiment and liquidity.
When whales accumulate, it can indicate confidence in an asset, reducing supply and possibly pushing prices higher. Conversely, a decrease in whale numbers could signal profit-taking, reduced confidence or liquidation, contributing to downward pressure on prices.
The sharp decline in whale numbers in just one week marks the lowest since November 2024. This decline suggests that large investors have divested, leading to selling pressure on the FTM price.
Unless whale activity stabilizes or turns to accumulation, this trend could undermine Fantom’s price recovery efforts, leaving prices vulnerable to further declines or an extended consolidation period.
Fantom Price Prediction: Can FTM Return to 1 USD in January?
If Fantom price continues its current downtrend, it could test the critical support at $0.618. A break below this support could increase selling pressure, potentially pushing FTM price below $0.60 or even lower to $0.50.
On the other hand, a reversal in the trend could pave the way for a recovery, with FTM price targeting a test of resistance at $0.879. A break above this level could restart bullish momentum, allowing the price to climb above $1 for the first time since late October.
If the rally is sustained, FTM price could target $1.05, signaling a revival of investor confidence and a transition back to the bullish trend.