Fantom Price Slips 10% in a Week as Sonic Upgrade Could Trigger Rebound

The Fantom price has increased 1% today, with the FTM/USD trading at $0.622. However, its 24-hour trading volume has plunged 17% to $292 million, indicating a fall in market activity. Fantom is now down 10% in a week, despite an increase of 59% in a month and 210% in a year, making it a promising investment.

Meanwhile, the Sonic upgrade can happen anytime before the end of this year (2024). The new Sonic upgrade improves the network’s performance based on Fantom Virtual Machine (FVM). The Lachesis consensus mechanism and Carmen database storage systems will notably support the upgrade.

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Fantom Statistical Data

Based on CoinmarketCap data: 

• FTM price now – $0.622
• Trading volume (24h) – $292 million
• Market cap – $1.74 billion
• Total supply – 3 billion
• Circulating supply – 2.80 billion 
• FTM ranking – #49

The Fantom price has broken below the rising channel, upholding the big picture bearish. Since early September, the Fantom price has been printing higher highs and lows, resulting in the formation of a rising channel.

However, the price faced a strong technical barrier at $0.7568, forcing the bulls to retreat. This has led to the bears stepping in and dwindling the price to $0.605, a 19% decrease from its high. Meanwhile, the bulls have established support at $0.594 to cushion against further downward movement. 

Diving into the technical outlook, the Fantom price trades well above the 200-day SMA at $0.5524. However, to be safer, the bulls must conquer a technical barrier established at $0.6794(coinciding with the 50-day SMA). This will encourage already sidelined investors to enter the market without worrying about sudden corrections.

Notably, the Relative Strength Index (RSI) sits below the 50-mean level, currently at 37.86. This suggests that the FTM token is oversold, tilting the odds in favor of the sellers. However, with the token undervalued, the bulls might capitalize on it, initiating a buy-back campaign that may send the RSI above the mean level.

On the other fence, the Moving Average Convergence Divergence (MACD) introduces a bearish outlook on the four-hour chart. A sell signal manifested when the blue MACD line flipped below the orange signal line, revealing that declines should be expected before the Fantom price rebounds above $0.67.

Worsening the outlook, the MACD indicator has plunged into negative territory, with the red histograms increasing. This suggests the bears have the reigns, leaving the bulls in total dust. 

Fantom Price Outlook: Can the Bulls Gain Momentum at This Level?

The bulls are nowhere to be seen, as the bears control the market. Meanwhile, if the bears increase their selling appetite, the Fantom price will drop. This will cause the price to dwindle to around the $0.55 support level, coinciding with the 200-day SMA. 

On the flip side, if the bulls gain momentum and capitalize on the oversold RSI, the Fantom price will flip bullishly. Moreover, if the $0.55 support holds, the bulls could build momentum, targeting the next critical level at $0.67. In a highly bullish case, the Fantom price could hit a new ATH at $1 in the coming days.