The crypto market has followed major global indices in decline at the start of trading this week. Investors, triggered by growing fears of Omicron and hawkish FED sentiment, are taking a risk-off approach to trading. The move has seen mega-cap coins like BTC and ETH decline, but Fantom (FTM), the smart contract platform, appears to be staring at an ugly day if conditions hold. Here are some notable facts:
FTM is sliding in intraday trading, losing ground by nearly 6% at press time
The price is closely approaching the 200-day moving average of $1.196
A massive wipeout could be triggered if the price falls below the 200-day SMA
Data Source: Tradingview.com
Fantom (FTM) – price action and analysis
Today’s intraday losses back a bearish trend that we have seen with FTC in recent weeks. After hitting all-time highs of $3.69 in October, it’s been nothing but free fall for FTC ever since. The coin is 65% lower than these highs and has seen $6 billion worth of market cap slip away during the same period.
It doesn’t seem like this trend is about to reverse. As noted above, we are watching closely to see if FTC breaks below the 200-day SMA of $1.19. If indeed this happens, we could be looking at a strong decline, with some analysts looking at shocking intraday losses of nearly 30%.
Should you buy Fantom (FTC) right now
Well, the truth is, market conditions right now point to a strong risk-off attitude for investors. This would, therefore not be the ideal time to buy. If the current sell-off we are seeing in equities continues to hit the crypto market, FTC and other altcoins could be in for a rout. It’s best to therefore wait.