Fantom (FTM) Breaks Bearish Trend with 60% Surge

Fantom (FTM) Breaks Prolonged Bearish Trend with 60% Surge

Fantom (FTM) has recently broken its prolonged bearish trend with an impressive 60% surge in price. Over the past 24 hours, FTM surged from $0.9282 to a high of $1.13, a level not seen since March.

While the global crypto market is facing turbulence due to Bitcoin’s sudden drop to the $91K zone, Fantom (FTM) has emerged as one of the top gainers, reaching a 9-month high. FTM climbed 21.74% in the past 24 hours, rising from a low of $0.9282 to an intraday peak of $1.13. As of writing, the altcoin is trading at $1.08 with a market capitalization of $3.06 billion, and its daily trading volume has surged by 68%, reaching $1.38 billion.

Fantom’s Resurgence Amidst Crypto Market Challenges

Fantom had been relatively muted over the past two weeks while the broader crypto market showed an extremely bullish trend. However, Fantom has now managed to break through its prolonged bearish trend and is sitting comfortably above the crucial $1.05 resistance level.

The surge in Fantom’s price can be attributed to a significant rise in open interest, which has increased by 18% to $408 million—a level last observed during the March bull run. According to data from Coinglass, the FTM open interest-weighted funding rate suggests a bullish market sentiment, with long position holders paying short position holders. This indicates that investors are leaning towards a positive outlook for the altcoin.

Can Fantom Break Through the $1.15 Resistance for Further Gains?

Despite the recent bullish momentum, FTM has encountered resistance at the $1.13 level, struggling to maintain its position above this threshold. This resistance level is reminiscent of the March rally, where FTM was rejected after reaching nearly $1.15. For Fantom to continue its upward trajectory, breaking through the $1.15 resistance is crucial, as it could unlock further price gains.

Since November 23, when Fantom’s 20-day EMA crossed above the 50-day SMA, a bullish trend has emerged as short-term momentum outpaced the longer-term trend. Upon closer inspection, Fantom is currently trading below the upper resistance of an ascending triangle, indicating that the market is testing the breakout level on the 4-hour chart of the FTM/USDT trading pair.

Technical Indicators and Future Price Movements

Additionally, the daily chart shows an RSI of 69, approaching overbought conditions. However, there is still room for upward movement as the Chaikin Money Flow (CMF) suggests strong buying pressure. Based on the recent price action and historical momentum, if FTM breaks the $1.15 resistance and closes a daily candle above this level, it could potentially surge by nearly 40%, targeting the $1.60 level.

• Resistance at $1.13 and $1.15 remains critical for further gains.
• If FTM hits the $1.60 target, it may revisit the $2 level.
• The Chaikin Money Flow (CMF) indicates strong buying pressure, supporting upward movement.

However, market volatility remains a concern. Immediate support is found at $1.07, with a potential drop to $0.99. If this occurs, FTM may consolidate between $1.00 and $1.05 before entering another bullish phase.