Fantom (FTM) Price Prediction 2022: Will FTM Recover After a 47% Crash in July?

Despite recovering nearly 28% in the last seven sessions, the investors still do not seem to be confident in Fantom.

Despite a seven-session rally that saw a 28% gain, investors remain skeptical of Fantom. Earlier, the coin lost traction and fell below the yearly lows, crashing by nearly 47% in the third week of July.

The recent sessions saw a recovery. However, applying the Fibonacci tool shows that FTM still hasn’t recovered 50% of the losses, indicating weakness in the trend.

On the other hand, some analysts anticipate a recovery in the coming sessions following the improvement in on-chain metrics (price DAA divergence).

Let’s analyze and attempt to gain a clear understanding of Fantom’s potential next move. Can it continue to rise or will it fall again towards the annual lows?

Analysis of Fantom DAA Divergence

In addition to the steady price recovery, there was a significant shift in the DAA (Daily Active Address) divergence of FTM price. According to analysts, the divergence between the price and daily active addresses was decreasing, indicating an improvement in the overall trend.

The price-DAA divergence indicator measures the change in divergence between the price and daily active address. An increasing divergence from the bullish side indicates an improvement in the price and vice versa.

DAA reflects the total number of users that engaged in any transaction in a day. An increase in the number of active addresses indicates greater user engagement, which has a positive impact on the price.

FTM DAA Divergence

As per Fibonacci, Fantom Price in a Risky Zone

Since last week, Fantom has recovered nearly 28% from the lows. However, the recovery is still insufficient as the price hasn’t invalidated the golden zone of the Fibonacci retracement tool.

When applying Fibonacci from the recent swing high at $0.549 to the recent swing low at $0.29, the 50% area or golden zone is at the $0.41 level. At the moment, FTM is hovering around $0.37, which is 38% on the Fibonacci tool.

If the price stalls and the bearish pressure increases, it could slide down to new lows. On the other hand, if Fantom continues to rise, the bulls may cross $0.41, indicating a recovery.

The technical indicators are showing bearish signs. Over the last seven sessions, Fantom has recovered by nearly 28%, but investors still lack confidence following a 47% crash in the later weeks of July.

The price recovery was accompanied by a reduction in the divergence between price and daily active addresses, indicating an improving trend.

Importantly, the recovery hasn’t invalidated the golden zone of the Fibonacci retracement tool yet. The price is hovering near $0.37, below the $0.41 level. Crossing $0.41 would confirm the recovery phase.

If the bearish pressure persists, the price may slide to new lows. Overall, the technical indicators suggest a bearish trend.

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