- Entering a new accumulation phase: FUN Token shows signs of entering an accumulation phase after rising 450% from March to April 2025, with consecutive green candles forming.
- Cup and Handle pattern: This technical pattern indicates a possible bullish breakout by August 2025.
- Bullish growth drivers: AI integration and launching 40 new games in the 2025-2026 roadmap could enhance momentum.
- Critical levels: Support at $0.003 and resistance at $0.008. Breaking resistance may push the price to $0.012, while breaking support may drop it to $0.0023.
- Risks: Market volatility and competition in the web3 gaming sector may negatively impact the bullish trend.
Long-term technical analysis
1. Historical retracement: The price has dropped more than 95% from its all-time high ($0.34) in 2021 due to bearish market conditions.
2. Base formation (2023-2025): The price has stopped making lower lows and started accumulating within the range of $0.0015–$0.003, indicating accumulation by "whales."
3. Wyckoff Accumulation Theory: The recent 450% rise represents the transition from an accumulation phase to an escalation phase, with the possibility of a repeat rise before a major correction.
4. Cup and Handle pattern: The handle of the pattern is forming at $0.004, and breaking it may lead to a strong rise by August 2025.
Short-term technical analysis
- Bullish scenario: Breaking the $0.008 level with high trading volume could push the price to $0.012.
- Bearish scenario: Breaking support at $0.003 could drop the price to $0.0023.
- Current indicators:
- RSI (14 day): 27.93 (indicating oversold).
- Moving averages: The price is currently trading below the 50-day and 200-day moving averages, reinforcing short-term bearish signals.
Factors supporting bullish growth
1. 2025-2026 roadmap: Focused on:
- Closed ecosystem: Unified wallet and single login to play across multiple games.
- Token burning: Game revenues are used to buy and burn FUN tokens, reducing supply and supporting value.
- Launching 40 games: Attracting 10 million players by Q1 2026.
2. AI integration: Smart rewards via Telegram to enhance user interaction.
3. Strategic partnerships: Collaboration with external game studios to enhance the adoption of FUN as the global gaming currency.
Risks and challenges
- Competition: Other GameFi projects may reduce FUN's market share.
- Volatility: The current Fear and Greed Index at 45 (Fear) may delay investors.
- Failure to expand: Failing to attract a sufficient user base may lead to price stagnation.
Summary
FUN Token is preparing for a potential bullish phase supported by:
1. Launching new games and burning tokens to enhance scarcity.
2. Positive technical framework (Cup and Handle, Wyckoff theory).
3. AI integration to stimulate engagement.
However, support ($0.003) and resistance ($0.008) levels must be monitored closely, as breaking either will determine the short-term trend. According to forecasts, the price may reach $0.012 by the end of 2025 in the optimistic scenario, while it may face downward pressure if expansion plans fail.#MarketPullback
