News - Fantom (FTM): Share price setback due to problems with multichain
With a 4 percent price drop, the layer 1 blockchain project Fantom (FTM) is one of the underperformers among the top 100 altcoins in the last 24 hours of the crypto market. Even in a week-to-week comparison, FTM's share price suffered a 14 percent drop.
Besides chart reasons (breaking the important horizontal support at US$0.357), the uncertainty surrounding the ongoing problems with Multichain (MULTI), also known to many investors as Anyswap, is probably also partly responsible for Fantom's price weakness.
Following ongoing Multichain upgrade problems that resulted in transaction delays since May 19, the Fantom Foundation removed $2.4 million from the MULTI liquidity pool on the decentralized exchange SushiSwap. Multichain's price subsequently corrected by more than 30 percent and also caused a significant price drop at Fantom. The silence from Multichain's management team is still causing unease among users of the cross-chain protocol, now that $1.5 billion in tokens have been locked up.
A not insignificant portion of them on the Fantom blockchain, forcing Binance on Thursday to suspend the deposit of a total of 10 different cryptocurrencies that can be traded on the internal Binance blockchain (BNB) and on Fantom's blockchain.
Although the FTM price has been able to stabilize at the support at US$0.316 over the past few hours, as long as Fantom does not recapture the important price level at US$0.357, there is a risk of an extension of the correction in the short term.
If this price level is recaptured, the zone around US$0.40 comes into view as a price target. If this zone can also be breached, the price recovery will extend towards $0.44. The maximum recovery target for Fantom is around the April highs of $0.53. In the medium term, the layer-1 blockchain could even correct towards the December lows at $0.203.