When Fantom (FTM) broke down between February and April below the $1.00 level, it followed Bitcoin and Ethereum. UST’s collapse did not help FTM, either. For Fantom, Andre Cronje and Anton Nell departing the project already worried holders. Fantom, at a $929 million market cap, just lost its billion-dollar level. Its total locked value is $1.64 billion, well off the over $12 billion it commanded earlier this year.
FTM investors need to watch Fantom’s ranking by market cap. The more it slips, the higher the risk of panicking investors exiting their FTM position. Should it have mini crashes intra-day, speculators could trade the dip to bet on a rebound. This approach requires setting tight stops. The trader will need to set a limit loss in case the rebound trade does not play out.
To sustain a longer-term rebound, Fantom needs Bitcoin trading at $30,000. It closed recently at $29,428 despite Nasdaq’s 7.07% rise in the last week. Unfortunately, BTC dropped when stocks fell but de-coupled at the worst time. When the bounce back in stock markets played out, Bitcoin did not join.
Fantom may rebound from here. Though it faces more selling pressure than Bitcoin, it may rise if ETH recovers. For example, similar to FTM falling, Ethereum also fell from $2000 to $1,815.50 last week. Should ETH stabilize, so might Fantom.
