Fantom's (FTM) native token has encountered a critical support level that could dictate its next major price move. Several Fibonacci levels have acted as resistance throughout FTM's recent downtrend.
Now, the last key Fibonacci support is in focus, and a break below this support could accelerate the downtrend. Here's a closer look at the technical analysis.
Fib Retracement Levels Hindered FTM Price Rally
After a strong performance in early 2023, reaching highs above $0.65, Fantom's FTM token faced resistance at the 0.236 Fib level ($1.19). This level served as a barrier for several weeks, preventing further upward momentum.
Once again, the token price encountered resistance at the 0.382 Fib level ($1.01) and failed to break above it. This Fib level acted as a strong resistance zone, limiting the token's ability to rally higher.
Continuing its struggle, FTM price faced resistance at the 0.5 Fib level ($0.87), which was a crucial support-turned-resistance level. This Fib level also hindered the token's upward movement.
Moreover, the token price failed to break above the 0.618 Fib level ($0.72), which was a significant support level during the token's rally in late 2022. This Fib level also served as a strong resistance level, preventing FTM price from rallying further.
Last Key Fibonacci Support In Focus
The final significant support now sits at the 0.786 Fib level, coinciding with the $0.55 price zone. This level has acted as strong support in the past, providing multiple bounces for FTM price.
However, if this support fails to hold, it could trigger a cascade of selling as more holders may choose to exit their positions.
