Fantom (FTM) is under increased market scrutiny due to Coinbase’s trading suspension, regulatory pressures, and bearish sentiment.
Coinbase to Halt FTM Trading
Coinbase has announced the suspension of Fantom (FTM-PERP) trading on January 24. The final settlement price for FTM-PERP will be determined in the last 60 minutes before trading ends. Experts believe that delisting might worsen the situation as fewer people will be able to trade FTM. Any open positions in FTM-PERP will be force-settled at the start of the trading suspension.
Bearish Sentiment Dominates Market Analysis
Analysts note several bearish patterns in technical analysis regarding FTM's recent performance. A descending triangle pattern indicates a continuation of the existing trend. FTM has been trading sideways and forming lower highs, with a key support level at $0.60. Should the price fall below this point, further declines to $0.50 or $0.40 are possible. The negative outlook is also supported by FTM trading below the 50-day, 100-day, and 200-day moving averages, which act as dynamic resistances. However, on the 4-hour chart, analysts have observed a 'falling wedge' pattern, which is typically bullish. Recently, FTM broke out of this wedge at around $0.68, suggesting a potential upward movement. Resistance after the breakout is at $0.85, and if the bullish trend continues, the price could reach $1.40.
Rebranding to Sonic: A Strategic Move
The company is set to rebrand from Fantom to Sonic to reposition in the market. This move aims to increase community involvement and interest. Sonic plans to introduce new features to its ecosystem, potentially enhancing token usage and demand. While rebranding may attract investors, its impact on Fantom's price will depend on market sentiment and adoption levels. The crypto market's attention to compliance issues should also be considered.
Fantom is under pressure, caught between bearish technical signals and potentially favorable reversal patterns. The $0.60 support level remains crucial. The Coinbase trading halt exacerbates the situation, but the rebranding opens new possibilities. With the January 24 deadline approaching, market participants will closely monitor Fantom's price and community activities to determine its direction.
