• FTM seems to be on a recovery but needs to break above the descending trendline to confirm the start of a rebound.
• However, with the adoption rate declining potentially from FTM to S, the potential breakout could be hindered.

The price action chart of Sonic [S] indicated that it’s currently testing a critical phase of potential recovery, evidenced by its interaction with a descending trendline.

However, FTM needs to decisively break above this trendline, which currently stands around $0.4558, to confirm a bullish reversal.

Supporting this potential breakout is the MACD showing a convergence of its signal and MACD lines, hinting at a reduction in downward momentum.

Meanwhile, the RSI at 41.63 remained below the typical ‘overbought’ threshold of 70 at press time, suggesting that there was room for uptrend without immediate overextension.

If Sonic successfully breaks above the trendline, it could challenge higher resistance levels above $0.4900.

Conversely, failure to surpass this trendline could see FTM retesting support levels around $0.3840 and lower. The MACD’s current position slightly above the signal line and a neutral RSI provide a balanced view.

This suggests that while recovery is possible, significant bullish momentum is yet to be confirmed.

A sustained move above the trendline could signify the start of a recovery phase towards $1. On the flip side, if the trendline continues to act as resistance, FTM might experience further declines, testing lower support thresholds.

Impact of declining adoption rate

Despite the recovery sentiments on FTM, the new adoption rate decreased from a 30-day high of 30.64% to the press time rate of 22.49%.

This downtrend in adoption could be signaling a waning interest or slowdown in new user engagement with the FTM network.

A lower adoption rate often correlates with reduced buying pressure, which can lead to a stagnation or decrease in price.

As FTM shows rec

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Author: Lennox Gitonga

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