Currently trading at $0.7934, Fantom (FTM) has experienced a 2.16% decrease in the last 24 hours, yet it continues to attract attention despite this downward trend.
Recent data from the network has shown a significant uptick in activity, prompting discussions on whether this could signal the start of a reversal in price.
Is Fantom Ready to Break Out of Its Current Trading Range?
FTM has largely been trading within a narrow range, with crucial support at $0.7316 and resistance at $0.9671. A breakout above this resistance level may propel the price towards $1.08, a psychologically significant threshold.
Conversely, a failure to maintain the current support could lead to further declines. Market indicators, such as the descending triangle pattern, suggest that a major price movement may be on the horizon.
Therefore, the immediate trading sessions are poised to influence Fantom’s short-term trajectory significantly.
Could Network Activity Signal a Bullish Future?
Fantom’s blockchain activity has surged, with a notable increase in new addresses (up by 38.46%), active addresses (up by 23.52%), and zero balance addresses (up by 63.51%) in the past week.
This surge indicates a rising interest and engagement in the ecosystem, potentially enhancing FTM’s long-term value. However, sustained growth is imperative to maintain this bullish momentum.
Thus, monitoring network activity serves as a crucial metric for assessing the future prospects of Fantom.
MVRV Ratio Suggests Possible Undervaluation
The Market Value to Realized Value (MVRV) ratio has fallen to 17.39%, indicating reduced profitability for FTM holders. Historically, such declines often precede significant price movements as they point towards potential undervaluation.
This scenario may attract buyers eyeing discounted prices, although continued selling pressure could counter such effects. Traders should closely follow market sentiment to anticipate the next market direction.
Are Technical Indicators Signaling a Reversal?
With the Relative Strength Index (RSI) hovering at 50.37, it suggests a neutral momentum, slightly leaning towards a bullish recovery. Additionally, the moving average cross signals possible volatility as short-term averages approach long-term averages.
These indicators collectively hint at a forthcoming price reversal for FTM, making the upcoming days pivotal for traders monitoring the cryptocurrency.
Liquidation Data Indicates Optimistic Trader Sentiment
Recent liquidation trends reveal a discrepancy with $23.06K in shorts against $98.22K in long positions, underscoring a predominantly bullish sentiment despite recent market declines.
While this optimism persists, external market factors could influence FTM’s performance. Hence, analyzing liquidation data alongside other metrics can provide a comprehensive understanding of the market landscape.
The combination of Fantom’s growing network activity, encouraging liquidation trends, and positive technical signals suggests the potential for a price recovery. Despite this, close monitoring of the MVRV ratio and resistance levels is essential. Sustained network growth and breakthroughs in key levels could pave the way for a significant rally in the forthcoming weeks.