Sentiments Still Bearish: Can Recovery In Fantom Price Be Taken

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Sentiments Still Bearish: Can Recovery In Fantom Price Be Taken Away?
Fantom price was up nearly 6% Intraday and over 10% in the last couple of sessions.
Despite the recent recovery, the weighted sentiment curve was maintained in a bearish territory.

While the blue chip cryptocurrencies were still under a strong bearish influence, few altcoins were observed to be kicking off from the lows. Fantom, which was moving in correlation to the market leaders, was observed to be diverging its path after a strong bounce from the lows.

FTM price has kicked off from the lows rising nearly 6% intraday and over 10% in the last couple of sessions. At the time of writing, Fantom was trading close to 0.410 recording a positive gain of 6% intraday.

Despite a strong rebound in the price, the analysts seemed to be worried as the on-chain metrics curve hasn't responded to the price rebound adding a risk of recovery failure. Let's dive deeper and try to analyze combining both the price and on-chain metrics.
Weighted Sentiment Curve Remains Muted Despite Price Rebound
As per Santiment, an on-chain analytics provider, the weighted sentiment curve has still remained muted despite a strong recovery in Fantom's price in the last couple of sessions. The weighted sentiment curve reflects the current biasness of the traders and investors whether it is bullish or bearish on a combined analysis.

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As per the data, 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 be fading after a short term rise suggesting a buyers attempt at a recovery. The 7-day active address was on a continuous downtrend showing negligible attention to the price rebound.

The active addresses reflect the total number of unique users that have participated in either buy or sell transaction within the provided time frame. An increased active address generally results in heightened demand.

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The intraday transaction volume dropped by 33.4% to $80.60 Million a day suggesting a demand drop. Moreover, the volume to market cap ratio at 6.65% suggests mild volatility in the price.
Fantom Price Analysis: Can Bulls Hold On To Higher Levels?
Fantom bulls have initiated a recovery from the lows which is obvious due to their domination near the demand zone. However, the real battle is expected as the price would proceed higher as the bears currently hold the control over the trend and wouldn't let go out of hands so easily.

The bulls seem to be aggressive with a clear state of mind to mark a bullish reversal however, it requires more momentum and volume as the bears are comfortably holding the control at the higher levels.

On the higher side, the bulls may need to struggle near the recent supply of $0.44 level. Now, if the bulls are able to conquer the recent supply of $0.44 level it may unlock a path of 20% towards north till the 200 day EMA.

On the contrary, if the bulls lose control near the supply zone, FTM price may again loom back towards the recent demand of $0.36 level.