Fantom [FTM] is showing promising signs of recovery following a test of the support level at $0.65 on the daily charts. This level has previously played a significant role in initiating a bullish rally from mid-November to mid-December.
As of now, the altcoin has surged by more than 10% in less than a day, indicating a potential upward momentum.
With the strengthening of its technical aspects and on-chain metrics, there are hints that FTM might be preparing for another bullish spike.
Crucial Support Around $0.65 Strengthens
The support zone near $0.65 for Fantom coincides with Fibonacci retracement levels, particularly the key reversal zone ranging between 0.618 and 0.718. Historically, this convergence has acted as a launching pad for FTM’s bullish movements.
Noteworthy is the weekly chart’s indication of Fantom maintaining a bullish pattern with higher highs and higher lows, implying that the ongoing retracement could be a healthy consolidation phase before a fresh rally.
Positive On-Chain Metrics in Favor
Analysis of on-chain data by IntoTheBlock reveals favorable prospects for Fantom, with significant emphasis on large transactions and bid-ask volume, pointing towards a bullish scenario.
There has been a notable 5% increase in large transactions on the network, signaling a growing interest from institutional and large-scale investors. Moreover, the bid-ask volume balance has risen by 18.43%, indicating a surge in buying pressure.
These metrics align well with the current bullish momentum of the altcoin, heightening the chances of it surpassing the upcoming resistance level.
Continued large transactions could elevate demand and push FTM towards testing higher resistance regions.
Future Prospects for Fantom
Both technical indicators and on-chain data point towards the $0.65 support level potentially acting as a catalyst for Fantom’s next upward move.
The sustenance of significant transactions and consistent buying pressure will be critical for breaking through the upcoming resistance level.
If the current bullish trend persists, Fantom could chart new highs and prolong its upward trajectory.