Fantom price faced rejection down nearly 30% as the breakout proved premature.
As the broader market declines, FTM could drop 25%, providing another buying opportunity around $0.6467.
The bearish argument will expire on a break and close above $1.2350.
The price of Fantom (FTM) was no exception on Tuesday, falling along with the rest of the cryptocurrency market. As altcoins take their cues from Bitcoin (BTC) prices, the only difference is that even if the Vanguard cryptocurrency starts to correct and takes the FTM price along with it, the altcoin will only be attractive once it has completed its decline.
Fantom prices may drop a healthy 25%
Fantom price fell around 30% after rejection at $1.2350 resistance. The bold uptrend was terminated due to a premature breakout. In an ongoing reversal, Fantom price could drop 25% to $0.6467 before bulls attack FTM again.
Several technical indicators support the possibility of further downside momentum, starting with a plunge in the Relative Strength Index (RSI) signaling reduced buyer motivation. The volume indicator is also in the red, indicating growing bearish sentiment.
If the support at $0.6467 fails to hold, Fantom price is likely to test the supply zone extending from $0.4597 to $0.6081 (turning into a bullish breakout). A break and close below the $0.5346 midline would confirm the continuation of the downtrend, with a possible move below the psychological $0.4000 level.
Based on RSI above 50, coupled with a positive Momentum Oscillator (AO) histogram, FTM bulls still have room to make a play in the market. If this group of traders buys the pullback at around $0.8000, a recovery bounce could come sooner than expected.
If the candlestick closes above $1.2350 on the three-day time frame, the short-term bearish thesis becomes invalid.
