The recent price movements of Fantom (FTM) have been marked by high volatility, showing fluctuations independent of the general positive trend in the market. What comes next? Well, investors and analysts are currently closely monitoring the upcoming critical support level, as various metrics from on-chain data provide insights into its potential reversal path.
Can the $0.609 Level Act as Strong Support?
Looking at the daily charts, FTM has experienced a significant 14% price drop over the past two days, drawing attention from both short-term traders and long-term investors alike. This drop has cast a spotlight on whether FTM can maintain its position at the next major support level of $0.609.
If this support level is breached, further downward movements may follow suit.
Influence of Notable Figures
The significance of the next critical support level at $0.609 aligns with FTM’s historical price behavior, marking areas where buying pressure has previously emerged. This noteworthy development comes amidst the market’s response to the recent actions of influential personalities in the cryptocurrency arena.
For instance, the recent endorsement by Elon Musk concerning a governmental appointment for enhancing efficiency by Trump.
Key Metrics Support a Possible Reversal for FTM
The ongoing price action of the altcoin is not happening in a vacuum. Indeed, the analysis heavily relies on on-chain metrics. Currently, Santiment’s MVRV ratio stands at -4.64%, indicating that FTM’s market price is below its average actual value.
Typically, a negative MVRV ratio suggests the potential for a market bottom since holders tend to weather periods of underperformance rather than sell at a loss.
Additionally, the holder data from Santiment reflects a growing number of FTM holders, despite recent price dips. This trend implies that investor trust remains strong, with significant holders believing in the token’s long-term prospects.
An increased holder base could provide a solid foundation, helping to stabilize the price during times of market turbulence.
Further analysis by CryptoCrypto delved into the long/short ratio data to gauge the short-term market sentiment. The ratio indicated a slight decrease, with short positions holding 52.87% of the market – indicating a cautious optimism among traders.
This minor imbalance in long and short positions may suggest that traders anticipate a potential reversal or stabilization around the $0.609 mark.
What Lies Ahead for FTM?
The recent 14% drop in FTM’s price has set the stage for a critical juncture at the $0.609 level. The prevailing MVRV ratio, the increasing number of holders, and the long/short ratio at press time all point towards a potential reversal at this vital support level.