Negative News from China and Its Impact
Fantom is an open-source smart contract platform designed for digital assets and decentralized applications (dApps). Its main features include speed, security, and scalability. Fantom addresses the limitations of earlier blockchain platforms, offering nearly instant transactions with extremely low fees.
The platform boasts a modular architecture, allowing full customization for digital assets. According to official sources, Fantom can handle thousands of transactions per second and scale to thousands of nodes. The Fantom ecosystem is growing rapidly, with thousands of active daily users and over 200 dApps already deployed.
Fully compatible with Ethereum, Fantom enables Ethereum-based dApps to be run on its network. Fantom’s native token, FTM, is used to interact with this open-source platform.
Fantom (FTM) has dropped more than 40% since August 13, and traders should be aware that the risk of further declines is still present. The U.S. Federal Reserve has indicated more interest rate hikes in its projections, with the policy rate expected to rise to 4.40% by the end of 2022, reaching 4.60% in 2023.
Lack of Evidence that Core Inflation Has Peaked
Despite hopes for a more dovish Federal Reserve, Minneapolis Federal Reserve President Neel Kashkari recently stated that there is no indication that core inflation has peaked. His comments suggest that the Federal Reserve may need to adopt more aggressive measures to combat inflation, which could lead to a 75 basis-point rate hike in November. As a result, the upside potential for Fantom and the broader cryptocurrency market remains limited for Q4 2022, with concerns about China’s economic instability also weighing on market sentiment. Ales Koutny, an emerging markets portfolio manager at Janus Henderson Investors, noted:
“Hong Kong stocks dropped to 13-year lows, and the yuan hit its weakest point in nearly 15 years, as global investors abandoned Chinese assets following fears of growth being sacrificed for ideological policies. The message is clear: COVID Zero lockdowns and sectorial crackdowns are not going away.”
Despite the ongoing bear market cycle, major players like Mastercard and Google are still building cryptocurrency-related products. Robert Kiyosaki, the author of *Rich Dad, Poor Dad*, has suggested that the cryptocurrency market presents numerous opportunities for savvy investors.
Technical Analysis for Fantom (FTM)
Fantom (FTM) has fallen from $0.41 to $0.18 since August 13, 2022, and currently trades at $0.20. Traders should consider that the risk of further declines remains significant, as the U.S. Federal Reserve is expected to continue its aggressive stance against inflation.
Looking at the chart, FTM has been fluctuating between $0.20 and $0.40 for several months. As long as the price remains below $0.40, a trend reversal is unlikely, and the price remains in the SELL-ZONE.
Key Support & Resistance Levels for Fantom (FTM)
In the chart below, I’ve marked important support and resistance levels to help traders understand potential price movements. Fantom (FTM) remains under pressure, but if the price rises above the key resistance at $0.40, the next target could be $0.50. If the price drops below $0.15, a strong support level, the next target might be around $0.10.
Factors That Could Drive Fantom (FTM) Price Up
The fourth quarter of 2022 may be challenging for FTM, and the near-term outlook for risk appetite is not promising. The sentiment in the crypto market remains weak, with a 95% chance of a 75 basis-point rate hike when the Fed meets in early November. The market sentiment is further dampened by economic weakness in China, making it difficult to adopt a “bullish” outlook for the rest of 2022.
The volume of FTM traded in recent weeks has declined, but if the price surpasses the resistance at $0.40, the next target could be $0.50. Traders should also note that FTM’s price correlates with Bitcoin. If Bitcoin’s price rises above $22,000, we might see FTM reach higher levels.
Risks Pointing Toward Further Decline for Dogecoin (DOGE)
The upside potential for FTM remains limited for the remainder of 2022, especially after the Fed’s comments suggesting that interest rate cuts are unlikely before 2024. Investors are concerned that the Fed’s aggressive rate hike policy could trigger an even larger sell-off, and as such, FTM may struggle to maintain its current price levels.
The price of Fantom (FTM) currently stands at $0.20. If it falls below $0.15, which is an important support level, the next target may be around $0.10.
Expert Opinions on the Outlook for Fantom (FTM)
The fourth quarter of 2022 is likely to be a tough period for Fantom (FTM), with the near-term outlook remaining bleak. The sentiment in the crypto market is still not showing any signs of improvement, with a 95% probability of a 75 basis-point rate hike at the beginning of November. The weakness in China further compounds the issue, making it difficult to adopt a “bullish” stance on the crypto market for the remainder of 2022. Mike Novogratz, the head of Galaxy Digital and former Goldman Sachs fund manager, has stated that cryptocurrencies won’t see significant growth until the Fed shifts its policy from hawkish to easing. On the other hand, Robert Kiyosaki, author of *Rich Dad, Poor Dad*, believes that the current crypto market offers many opportunities for intelligent investment.
