Fantom Network Growth: Is FTM’s Price Rally Near?

Fantom Network Activity Sparks Hopes for Price Reversal

Fantom’s recent surge in network activity is fueling optimism about a potential price rebound, though mixed technical indicators raise questions about the future trajectory of FTM’s price.

Fantom’s Price Tests Key Levels Amid Increased Network Activity

Fantom (FTM) is currently trading at $0.7934, marking a 2.16% decline in the past 24 hours. Despite this downtrend, the increase in network activity is attracting attention, with market sentiment showing signs of optimism. This surge in blockchain activity could signal a potential recovery for FTM, though technical indicators remain mixed.

Can FTM Break Free from Its Current Range?

FTM’s price has remained within a narrow range, with critical support at $0.7316 and resistance at $0.9671. A breakout above this resistance could propel the price towards $1.08, a significant psychological level. However, if FTM fails to hold support, it may face further losses. The presence of a descending triangle pattern on the charts suggests that a major price move could be on the horizon.

• Support level: $0.7316
• Resistance level: $0.9671
• Potential breakout target: $1.08

The next few trading sessions could be pivotal for determining FTM’s short-term price direction.

Network Activity Hints at Bullish Future

Recent data from Fantom’s blockchain reveals significant growth in network activity. The number of new addresses has increased by 38.46%, while active addresses have risen by 23.52%. Additionally, zero-balance addresses have surged by 63.51% in the past week. This growing interest suggests potential long-term value for FTM as more users engage with the ecosystem. However, maintaining consistent growth will be essential to sustain bullish momentum, making network activity a key indicator to monitor.

MVRV Ratio Indicates Potential Undervaluation

The Market Value to Realized Value (MVRV) ratio has dropped to 17.39%, signaling reduced profitability for FTM holders. Historically, such declines have often preceded significant price movements, indicating potential undervaluation. This could attract buyers seeking discounted prices. However, persistent selling pressure could also push prices lower, so traders should keep a close eye on market sentiment.

Technical Indicators Point to Potential Reversal

The Relative Strength Index (RSI) currently stands at 50.37, indicating neutral momentum with a slight lean towards a bullish recovery. Meanwhile, the moving average cross suggests potential volatility, as the short-term average is approaching the long-term average. These technical signals imply that FTM may be approaching a turning point, making the coming days crucial for traders.

Liquidations Reveal Bullish Sentiment

Liquidation trends show a notable imbalance, with $23.06K in shorts against $98.22K in longs. This suggests that traders remain optimistic about a price increase despite recent declines. The bullish liquidation trend indicates that many are positioning for an upward movement in FTM’s price. However, external market factors could still impact FTM’s performance, so liquidation data should be analyzed alongside other metrics for a comprehensive view.

Conclusion: Is FTM’s Price Set for a Rebound?

Fantom’s rising network activity, combined with bullish liquidation trends and technical signals, suggests that a price recovery may be on the horizon. However, the declining MVRV ratio and resistance levels must be carefully monitored. If FTM can maintain its network growth and break through key resistance levels, a rally could materialize in the coming weeks.