Fantom Price Forecast: Can FTM Head For A Recovery Or Crash

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Fantom Price Forecast: Can FTM Head For A Recovery Or Crash Again
Meta Description: Fantom lost traction and crashed below the annual lows, eroding nearly 47% in the third week of July

The FTM price DAA divergence is decreasing indicating the rising confidence of the buyers
At the time of writing, Fantom was exchanging hands close to $0.37 indicating a negative intraday development of 0.38%.

Despite recovering nearly 28% in the last seven sessions, the investors still do not seem to be confident in Fantom. Earlier Fantom lost traction and crashed below the annual lows, eroding nearly 47% in the third week of July.

The recent sessions have experienced a recovery. However, as per Fibonacci tool the FTM price still has not been able to recover 50% of the losses indicating a weakness in the trend. However, few analysts are anticipating a recovery in the forthcoming sessions as there has been some sort of improvement observed in on-chain metrics: price DAA divergence.

Let's analyze and try to get a clear picture of where Fantom may lead from here. Can it continue to inch higher or fail again towards the annual lows.
Fantom Price DAA Divergence Analysis
Along with a steady price recovery in the Fantom price, A notable shift in FTM price DAA (Daily Active Address) divergence was observed. As per the analysts, the divergence in the price and daily active addresses were reducing indicating an improvement in the overall trend.

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Source: app.santiment.net

The price DAA divergence indicator measures the change in divergence between the price and daily active address. A decreasing divergence from the bearish side indicates an improvement in the price and vice versa.

Moreover, the Daily active addresses reflect the total number of users that have engaged in any transaction in a day. A rise in the number of active addresses represent the increasing user engagement of the users leading to a positive impact on the price.
Fantom Price In A Risky Zone As per Fibonacci
Since last week, Fantom has recovered nearly 28% from the lows. However, as per the Fibonacci the recovery is still not enough as the price still hasn't invalidated the golden zone of Fibonacci retracement tools.

While applying Fibonacci from the recent swing high at $0.549 to recent swing low at $0.29, the 50% area or golden zone lies at $0.41 level. As of now, Fantom price seems to be hovering close to $0.37 which is 38% of the Fibonacci tool.

Now, if the price fails to gain further and bearish pressure exceeds then it may continue with a bearish move and slide down towards new lows. On the contrary, if Fantom continues on the higher side, the bulls may need to surpass the $0.41 level in order for a continued recovery.

The technical indicators are leaving a bearish remark over the trend on a combined analysis.

Fantom has recovered nearly 28% in the last seven sessions but still lacks investor confidence after a 47% crash in the later weeks of July. The price recovery is accompanied by a reduction in the divergence between price and daily active addresses, indicating an improving trend.

However, the recovery hasn't invalidated the golden zone of the Fibonacci retracement tool, with the price hovering around $0.37, below the $0.41 level needed for continued recovery. If bearish pressure persists, the price may slide to new lows. Technical indicators suggest a bearish trend on a combined analysis.