FTM: Fantom Price Slowly Forms Head & Shoulders

The Fantom price has risen in the past three straight days even as other cryptocurrencies waver. FTM is trading at $1.70, which is about 50% above the lowest level this month. Its total market cap has risen to more than $4.2 billion.

Fantom is a fast-growing layer-1 platform where developers can build highly scalable decentralized applications.

The goal of the platform was to eliminate or reduce the challenges that were experienced by the first generation platforms like Ethereum and Ethereum Classic. It is a highly-scalable project that is significantly quicker and less expensive than Ethereum. It achieves this using the Byzantine Fault Tolerant (BFT) technology.

According to DeFi Llama, Fantom has become a leading player in the DeFi industry. It has about 96 apps built on its platform. These apps have a total value locked (TVL) of more than $4.9 billion. In contrast, Polygon has about 140 apps that have a TVL of more than $5.2 billion. 

Yet, the MATIC token has a market cap of more than $18 billion. Some of the biggest DeFi apps in Fantom are Multichain, Geist Finance, SpookySwap, and TombFinance, among others.

Fantom price prediction

The daily chart shows that the FTM price surged to an all-time high of $3.68 on October 28th. Since then, Fantom has declined by about 53%. A closer look shows that the coin is capped at the 25-day and 50-day moving averages. 

At the same time, it appears like the coin has formed a head and shoulders pattern. In price action analysis, this pattern is usually a bearish sign. It is currently forming the right shoulder.

Therefore, the coin will likely have a bearish breakout in the coming days. If this happens, the next key support level to watch will be at $1.0. On the flip side, a move above $2 will invalidate the bearish view.

Fantom Price