Fantom’s [FTM] bulls successfully defended the $1.22 support level and demonstrated enough strength to push the price higher. It is likely that FTM will soon challenge the resistance zone between $1.44 and $1.5.
With Bitcoin [BTC] currently on the rise and recently surpassing $100k, it is expected that the altcoin market will see further gains in the upcoming months.
Is it Time for FTM to Retrace?
Looking at the daily chart, the breach of the $1 mark significantly boosted bullish confidence. This level was later retested as a support on November 28. The increase in trading volume during this breakout indicated strong buying pressure behind FTM.
The A/D indicator benefited from the rising trading volume, showing increased demand as Fantom’s price continued its upward trend. Additionally, the $1.22 level has now turned into a reliable support over the last five days.
This level was last seen in March before the altcoin entered a downtrend that lasted six months. The upcoming resistance levels are at $1.44, $1.68, and $1.79.
Both the Stochastic RSI and the RSI on the daily chart have entered overbought territory, suggesting that while an immediate pullback is not imminent, the market might be overextended. Notably, FTM has surged by 105% in just a little over two weeks.
Furthermore, the resistance at the 23.6% extension level, set at $1.44, could temporarily stall the bullish momentum.
Increasing Speculative Interest
The Open Interest for FTM has been rising alongside its price, indicating a strong bullish sentiment in the Futures market.
Moreover, the funding rate has been increasing over the past week, highlighting a growing distinction between Spot and Futures prices. This divergence is driven by a rise in speculative traders and demonstrates a strong bullish outlook in the short term.
Disclaimer: The information provided should not be considered financial, investment, trading, or any other form of advice. It solely represents the author’s viewpoint.