Key Resistance Levels
The altcoin’s prevailing price action keeps FTM within an ascending channel, eyeing resistance levels at $0.7955 and $0.9330. Given the market momentum, investors may wonder: Can Fantom (FTM) hold this bullish trend?
Analyzing the Ascending Channel
FTM’s trajectory within the ascending channel highlighted a clear bullish trend. The channel’s structure suggests that FTM could maintain upward momentum if it respects the support and resistance boundaries. Additionally:
- Breaking above $0.7955 resistance would reinforce bullish sentiment.
- This could push the price towards the next level at $0.9330.
Bollinger Bands and RSI Analysis
At press time, the Bollinger Bands appeared to be widening, indicating a surge in volatility as FTM approached the upper band. Such an expansion generally signifies that buyers are dominating the trend. If the price continues hugging the upper band, it could lead to a potential breakout to new highs.
The Relative Strength Index (RSI) is currently around 54.72, remaining in the neutral zone. This indicates that FTM has further room to climb without facing overbought conditions, supporting the possibility of additional gains if buying volume persists.
Price DAA Divergence – A Potential Red Flag?
The Price DAA (Daily Active Addresses) Divergence shows a concerning -79.72% reading, suggesting fewer active addresses despite recent price hikes. This discrepancy highlights a lack of underlying network growth, often a sign of reduced sustainability for the rally.
Additionally:
- Fewer active addresses may weaken FTM’s foundation in the event of greater selling pressure.
- This might urge traders to watch for a potential pullback if address activity fails to rebound.
FTM On-Chain Signals – Mixed Sentiment?
Fantom’s on-chain data presented mixed signals:
- Net Network Growth stood at 0.16%, indicating gradual adoption.
- Concentration of large holders rose by 0.04%, showing that major investors are not offloading positions, which is typically bullish.
- Large Transactions decreased by 1.38%, hinting at lower sell-off pressure from whales.
- However, the “In the Money” metric revealed a slight bearish tilt at -0.79%, indicating a small fall in profitable positions.
These mixed on-chain signals reflect cautious optimism, with investors closely monitoring market sentiment shifts.
FTM Liquidations – Short Traders Face Pressure
FTM’s liquidation data showed that short positions recorded significant liquidations of $162.78k, with long liquidations lower at $95.54k. This pattern projects bearish sentiment among short traders who may be misjudging the price trend. If FTM maintains strength above $0.67, further short liquidations could drive the price higher.
Conclusion
Fantom’s momentum, paired with supportive technical indicators and a balanced on-chain picture, flashes a positive outlook for the altcoin. However, the Price DAA Divergence and the slightly bearish “In the Money” metric imply caution. If FTM clears the $0.7955 resistance with sustained volume, it may continue its rally towards new highs within the channel.
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