Phantom (FTM) price has gained a lot in the last two days. However, it is yet to retest an important horizontal level indicating that the trend is bullish.
On November 28, Andre Cronje published a Medium thread detailing Phantom’s financial history.
This article describes the entire financial history of Phantom Blockchain from June 2018, when they raised $40,000,000 in Ethereum (ETH), to November 2022, a time when they have over $100,000,000 in stable coins, $100,000,000 in cryptocurrencies and $100,000,000 in non-crypto. Have $50,000,000 in assets. With the current salary burn, he has a runway of 30 years.
The main takeaways from the article are:
- Phantom rejected several attempts at exchange listings and influencer marketing.
- He aggressively pursued Decentralized Finance (DeFi) solutions. Most of the yield was cultivated in Compound (COMP) and Synthetics (SNX). Fantom earns around $6 million annually from its DeFi strategies.
After the article came out, the price of FTM increased by 20%. Other tokens such as SCREAM and GAINS have also been seen in the Phantom ecosystem explosive growth,
Phantom price surges after bullish divergence
The price action on the daily time frame shows that FTM price has declined since hitting a high of $0.315 on November 5. The decline was sharp, reaching a low of $0.164 on 22 November.
Ahead of a bullish divergence in the RSI (green line), the price of Phantom is rising. The rate of increase has picked up significantly in the last 24 hours. The RSI is now above 50, indicating a bullish trend.
However, the phantom price was rejected by the $0.22 horizontal resistance area (red icon).
Despite the bullish RSI, the Phantom price forecast is considered bearish until it retests the $0.22 resistance area.
Important long term level can determine trend
Technical analysis from the weekly chart reiterates the importance of the $0.22 area. Currently, the FTM has traded lower below the price area. A similar decline was also observed in July 2021 (green circle). But, after the phantom price reclaimed the area, it started a sharp upward movement leading to a new all-time high.
As a result, if there is a reclaim, there may be a corresponding increase. It is also supported by the weekly RSI, which has generated a bearish divergence (green line).
However, there is almost no support below the current price till $0.04. Therefore, if a rejection occurs instead, there could be a much sharper downside for the price in the future.
Consequently, the Phantom price prediction can be considered bullish if the FTM price reclaims the $0.22 area. Conversely, if it gets rejected, a sharp decline towards $0.04 is possible.
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