Fantom (FTM) Price May Fail to Breach This Resistance Level

6 months ago 1

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Fantom’s (FTM) price has gained tremendously over the last few days, but the altcoin is now considering a potential correction.

This is largely because FTM holders are exhibiting the potential to sell their holdings for profit.

Fantom Investors Could Sell

Fantom’s price closed a 23% rally in the span of two days to bring the altcoin to the crucial resistance block. While this incentivized many new investors to join the network, it might have triggered a different sentiment among existing holders.

The Market Value to Realized Value (MVRV) ratio backs this up. The MVRV ratio gauges investor profit and loss. Fantom’s 30-day MVRV of 14% indicates profitability, which may trigger selling. Historically, FTM corrections happen within the 7% to 21% MVRV range, known as the danger zone.

Fantom is vulnerable to this, and investors are already awaiting an opportunity to sell. This is evident in the fact that about 105 million FTM is on the verge of becoming profitable.

According to the Global In/Out of the Money (GIOM) indicator, the $84 million worth of supply would bear gains once Fantom’s price crosses the $0.82 mark. This is because the supply was bought between $0.76 and $0.82.

Read More: What Is Fantom (FTM)?

Naturally, since FTM holders have been waiting for profits for nearly a month, they could move to sell soon.

FTM Price Prediction: A Breach May Not Be Likely

Fantom’s price, trading at $0.80 at the time of writing, is in the resistance block marked from $0.80 to $0.88. This range has proved to be solid resistance and support in the past, with FTM failing to breach it thrice in the past month.

Currently, FTM is testing the lower limit as support, and a rise to $0.82 could trigger selling among investors. Consequently, Fantom’s price will take a hit and likely lose $0.80 as support.

This will send the altcoin back into consolidation between $0.63 and $0.80.

But if the investors opt to HODL and not sell, Fantom’s price could continue its rise, potentially breaching the resistance block altogether. Flipping it into support would invalidate the bearish thesis, resulting in an increase above $0.90.

The post Fantom (FTM) Price May Fail to Breach This Resistance Level appeared first on BeInCrypto.

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