After testing the $0.65 support zone, Fantom [FTM] is showing strong signs of recovery on the daily price charts.
The significance of this level was evident in the previous rally observed between mid-November and mid-December.
As of the latest update, the altcoin has gained more than 10% within a day.
With the altcoin gaining momentum, both technical analysis and on-chain data indicate a potential upcoming bullish trend for FTM.
Crucial $0.65 Support Zone Strengthens
Fantom’s support zone around $0.65 is in line with Fibonacci retracement levels, particularly the key reversal area ranging between 0.618 and 0.718, which historically has acted as a springboard for bullish advancements for FTM.
Notably, the weekly chart demonstrates a bullish pattern for Fantom, characterized by higher highs and higher lows.
This pattern indicates that the current retracement phase could be a healthy consolidation period before a potential rally.
Bullish On-Chain Metrics Analysis
Upon analyzing the on-chain data from IntoTheBlock, it is observed that Fantom’s bullish outlook is supported by substantial large transactions and bid-ask volume.
There has been a remarkable 5% increase in large transactions on the network, signifying rising interest from institutional and whale investors. Moreover, the bid-ask volume balance surged by 18.43%, indicating a growing buying pressure.
These metrics align with the current bullish momentum of the altcoin, heightening the chances of Fantom breaching its upcoming resistance level.
If the trend of large transactions persists, the escalating demand could drive FTM towards testing higher resistance levels.
What Lies Ahead for Fantom
Both technical analysis and on-chain data suggest that the $0.65 support level could serve as the catalyst for triggering a new upward rally for Fantom.
Sustained large transactions and increased buying pressure are essential for Fantom to surpass its next resistance barrier.
If the bullish trend persists, Fantom might achieve new peaks and extend its uptrend.