Fantom [FTM] has recently witnessed a substantial surge in value, with experts sounding alarms as the token edges closer to a significant resistance barrier.
With a current trading price of $0.4874, Fantom has experienced a modest decline of -0.76% over the past 24 hours, despite registering an impressive 25.29% surge in value throughout the week. The token boasts a market capitalization of $1.36 billion, with 2.8 billion FTM tokens in circulation.
Renowned crypto analyst @CryptoJobs3 has voiced apprehensions regarding a potential bear trap scenario as Fantom approaches the $0.50–$0.5050 range.
Pointing out a bearish discrepancy on the RSI indicator, the analyst asserted,
“There is a possibility for a correction; the price might retest the $0.470–$0.4650 range.”
An escalation beyond $0.50 could propel the price towards $0.5200, yet the analyst maintained a vigilant stance towards initiating long positions at the current levels.
Proceeding with Caution Amid Bullish Momentum
Several critical technical indicators indicate a short-term bullish trend, although the presence of overbought conditions could potentially trigger a market retracement.
The Bollinger Bands indicate a close proximity of the price to the upper band, hinting at likely overbought circumstances.
The narrow bands depict reduced volatility, suggesting an imminent breakout.
The MACD has shown a bullish crossover, with the MACD line positioned above the signal line alongside positive histogram bars, hinting at increasing bullish momentum. However, this trend is still in its nascent phases.
Simultaneously, there is a lack of substantial trading volume, indicating a feeble conviction behind the recent price upsurge.
Experts propose that a breakthrough beyond $0.50, coupled with a surge in trading volume, would confirm a bullish trajectory, whereas a failure to breach this level might trigger a pullback.
Heightened Market Activity Surrounding Fantom?
The FTM Futures Open Interest chart unveils a significant surge in open interest, reaching $174.85 million as of September 11th.
This surge in Open Interest correlates with Fantom’s price gravitating towards the $0.50 mark, underscoring an escalated trader engagement and speculative interest.
For several months, the Open Interest oscillated within the range of $100 million to $200 million, indicating subdued trading activity.
The recent surge in both price and Open Interest suggests a growing confidence in Fantom’s prospective price movements, albeit hinting at heightened volatility.
Reviewing Fantom’s Total Liquidations chart, data reveals long positions worth $141.51K were liquidated compared to $10.28K in short positions by September 11th. Binance witnessed the majority of long liquidations at $88.86K.
This wave of liquidations underscores the surprise faced by numerous traders due to recent price fluctuations, especially near the $0.4864 level.
The liquidation statistics point towards an excessive optimism among long traders regarding Fantom’s sustained upsurge, leading to liquidations when the price failed to surge higher.
The prevailing uncertainty regarding the $0.50 resistance level implies that traders are maintaining a cautious approach.
Rising Buying Pressure
A recent analysis by CryptoCrypto highlighted a surge in buying pressure. As Fantom’s exchange-based supply decreased, the off-exchange supply witnessed an uptick.
This trend indicates a movement of holdings from exchanges, typically indicating long-term confidence in the asset.
Moreover, there has been a notable spike in whale activity surrounding Fantom, evident from a surge in large transactions. This surge in whale movements and exchange outflows has likely contributed to Fantom’s recent bullish momentum.
However, traders are continuing to exercise caution against a potential bear trap at the current price level.