Fantom (FTM) price rebounds ahead of US inflation data
FTM price rose modestly ahead of the upcoming US inflation data.
It has also done well as traders wait for the upcoming fUSD stablecoin launch.
Fantom (FTM) price made a small comeback on Tuesday as investors waited for the upcoming American consumer inflation data. It rose to a high of $0.4780, which was a few points above this week’s low $0.4138. This price is about 30% below its highest point in 2023.
US consumer inflation data ahead
The main catalyst for FTM will be the upcoming American consumer inflation numbers scheduled for Tuesday. Economists expect the data to show that the country’s inflation inched downwards in January as goods prices retreated.
According to Reuters, the median estimate among economists is that the headline consumer price index (CPI) declined from 6.5% in December to 6.2% in January. This will be the seventh straight months that inflation has moved downwards.
Core inflation, which is an important number that excludes the volatile food and energy prices, is expected to have dropped from 5.7% in December to 5.6%. These inflation numbers will have an important role for Fantom and other cryptocurrency prices like Bitcoin and Ethereum.
They will also have an important role for other financial assets like stocks and commodities. Their impact is that they will have an impact on the Federal Reserve. Higher-than-expected inflation numbers, coming a week after the US published strong jobs numbers, will mean that the Fed will be more combative.
On the other hand, if inflation softens, there is a likelihood that the Fed will be a bit dovish in its bid to prevent a hard landing. Besides, the yield curve has inverted to the lowest point since the 1980s, signaling that a recession could be coming.
Meanwhile, Fantom price is reacting to news that the developers are working to rebuild the network after the challenges we wrote about here. One of the projects the developers are working on is a stablecoin known as fUSD that will power its ecosystem. The news was recently confirmed by Andre Cronje, an influential figure in the ecosystem.
Fantom price prediction
On the 4H chart, we see that the FTM price has crawled back in the past few days. It has moved from a low of $0.4172 to a high of $0.4827. Still, the coin remains below the 50-period moving average. It has also moved slightly below the 38.2% Fibonacci Retracement level.
A closer look shows that it is forming a bearish flag pattern. Therefore, the coin will likely have a bearish breakout, with the next key level to watch being at $0.40. A move above the resistance point at $0.50 will invalidate the bearish view.
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