Fantom and Polkadot Retest Lows: Rebound on the Horizon?

Market Overview

The cryptocurrency market has faced significant corrections over the past week. Bitcoin (BTC) plunged to a low of $92,000 on December 17, 2024, but has since recovered slightly, trading above $95,000. This market downturn has heavily impacted major altcoins like Fantom (FTM) and Polkadot (DOT), with both experiencing notable declines over the past seven days.

• Fantom (FTM): Over 30% decline.
• Polkadot (DOT): Over 20% decline.

Both tokens are currently retesting critical levels after breaking out of significant downtrend patterns, making this a pivotal moment for their future price movements.

Fantom (FTM) Analysis

Fantom (FTM) recently demonstrated a strong bullish trend, breaking out of a Descending Triangle pattern on November 27, 2024. This breakout propelled FTM to a high of $1.47, marking a significant upward move.

However, following the latest market dip, FTM is now retesting its descending resistance line and is currently trading at $0.95.

• Resistance Level: $1.47.
• Support Level: $0.95.
• Potential Upside: 56% from current levels.

If FTM holds this support and rebounds, it could aim for the $1.47 resistance zone, presenting a substantial recovery opportunity for investors.

Polkadot (DOT) Analysis

Polkadot (DOT) has followed a similar pattern, breaking out of a Descending Triangle on November 23, 2024. This breakout drove DOT to a high of $12.05, showcasing significant gains.

With the recent 20% market decline, DOT is now retesting its descending resistance line and is currently trading at $6.81.

• Resistance Level: $12.05.
• Support Level: $6.81.
• Potential Upside: 74% from current levels.

A successful rebound from this support could lead DOT back toward the $12.05 resistance level, offering a promising recovery opportunity for traders.

What to Expect Ahead?

Both Fantom (FTM) and Polkadot (DOT) are at critical support levels, with technical setups indicating the possibility of a rebound. However, the broader cryptocurrency market, especially Bitcoin’s dominance, currently at 58.85%, will heavily influence their price trajectories.

Key factors to watch include:

• Bitcoin’s price movements and overall market sentiment.
• FTM’s ability to hold $0.95 and target $1.47.
• DOT’s performance at $6.81 and potential rally toward $12.05.

While the potential upside is compelling—56% for FTM and 74% for DOT—investors should exercise caution due to ongoing market volatility and mixed sentiment.