Fantom Forecast: Continues to Struggle

Christopher Lewis

Avoid all of the smaller projects unless you are willing to sit through a lot of volatility,

Fantom continues to look stagnant at best, as it hangs just above the $0.25 level, and seemingly has nowhere to be. Crypto markets, in general, continue to fall apart, so these other more exotic cryptos will continue to suffer at the hands of a complete lack of interest. At this point, it looks as if a breakdown below the $0.25 level is all but assured, and at that point, we have to wonder what happens next?

A lot of this is going to come down to whether or not there is a use case scenario for Fantom. While the ecosystem is one that has attracted a lot of attention recently, it’s worth noting that the market is down roughly 92% this year, and therefore it’s difficult to imagine a scenario where things could get worse, but the catch is that something that has fallen 92%, can also fall another 92%.

We are entering a very dark time for crypto, as this “crypto winter” is likely to be much more damaging than the last one. At this point, there are a lot of crypto markets that are going to completely disappear, because there are far too many out there chasing the same problem. In a lot of ways, it seems as if crypto is a solution looking for a problem. Furthermore, with central banks very likely to continue working with the idea of digital currencies themselves, it is more likely than not that a lot of these cryptocurrencies, at least the ones that are considered to be “money”, will completely disappear in the next year or two.

Because of this, you should avoid all of the smaller projects unless you are willing to sit through a lot of volatility, risk the reality of it going to zero, and then have a longer-term outlook. I mean, it’s possible that this market goes to the highs again, but it will need to see other ecosystems such as Bitcoin and Ethereum really start to take off before people are willing to put money toward the smaller markets like Fantom. In other words, this is essentially “dead money”, and therefore if you have the ability to short this market, that might be the play here. The question isn’t so much as where we can go, but whether or not we will be going anywhere any year.

Fantom

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

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