Sentiments Still Bearish: Is The Recovery In Fantom Price Weak?

• Fantom price was up nearly 6% intraday and over 10% in the last couple of sessions.
• Despite the recent recovery, the weighted sentiment curve continued to be in bearish territory.

While blue-chip cryptocurrencies were strongly bearish, a few altcoins appeared to be rebounding from their lows. Fantom (FTM) joined the flow with those altcoins and bounced back.

The Fantom price rose nearly 2% intraday and over 31 % in the last couple of sessions. When writing, the token was trading close to $0.482. It ranks 51st in the crypto-verse with a live market capitalization of $1.34 Billion.

However, the analysts seemed cautious as the on-chain metrics curve hasn’t responded to the price rebound. This added a risk of recovery failure. Let’s dive into the details.

Weighted Sentiment Curve Remains Muted Despite Fantom Price Rebound

Per Santiment, the weighted sentiment curve remained muted despite a strong Fantom price recovery in the last couple of sessions. The weighted sentiment curve reflected the bias of the traders and investors, whether bullish or bearish, on a combined analysis.

The weighted sentiment curve has maintained its prevailing bearish trend. However, a short-term shift to the higher side, i.e., the zero line, was noted, suggesting a recovery.

Furthermore, the 24-hour active address seemed to fade after a short-term rise, reflecting the buyers’ attempt at a recovery. The 7-day active address was on a continuous downtrend, showing negligible attention to the FTM price rebound.

The active addresses reflect the total number of users participating in buy or sell transactions within the time frame. An increase in active addresses generally results in heightened demand.

The intraday transaction volume dropped by 33.4% to $80.60 Million, suggesting a demand drop. Moreover, the volume-to-market cap ratio of 6.65% suggested mild volatility in the Fantom price.

Fantom Price Analysis: Can Bulls Hold on to Higher Levels?

Fantom crypto bulls have initiated a recovery from the lows. This is evident due to their dominance near the demand zone. However, a battle is anticipated as bears control the overall trend.

The FTM price has surpassed the 20 and 50-day Exponential moving averages, suggesting a buyer’s domination in the short term. However, it still lags 200-day EMA by 9%, indicating more buyers’ participation in a bullish asset price reversal.

   

The bulls were aggressive, with a clear state of mind that marked a bullish reversal. However, it requires more momentum and volume as the bears control the higher levels.

On the higher side, the bulls might struggle near the 200-day EMA. Now, if the bulls conquer that moving average, they may unlock a 20% and witness reversal further.

On the contrary, suppose the bulls lose control near the 200-day EMA. If this happens, the Fantom price may again melt to the demand zone of $0.36.

When writing, the Relative strength index (RSI) line and 14-day SMA line were headed higher, indicating a short-term recovery. As of now, the RSI was placed at 57.62 points, and the SMA line was at 50.86 points.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.