Displaying indications of vigor post its breakout from a descending symmetrical triangle, Fantom [FTM] has seen its trading price at $0.5425, registering a 6% surge over the last 24 hours. Notably, on-chain data has exhibited substantial growth in network activity, enhancing the bullish sentiment surrounding the token.
Moreover, there has been a notable 20.20% increase in the number of holders “in profit,” signaling a positive trend for investors. However, significant resistance levels remain, potentially influencing the next move for the token.
Expansion in FTM Addresses: A Positive Trend?
Presently, Fantom’s network activity has been on the rise, with new addresses witnessing a 35% increase in the past week. This uptrend points towards a growing adoption rate and user interaction, typically considered a bullish sign.
Furthermore, active addresses have also seen a 10% uptick, underscoring the network’s expansion. Nonetheless, a notable 52.86% surge in zero-balance addresses could imply some traders might be exiting or consolidating their holdings.
While these developments are encouraging, they could also trigger profit-taking actions, potentially slowing down the momentum for FTM. Continuous demand will be critical to sustaining its current trajectory.
Transaction Behavior Shifts: Whale Activity in Question
An analysis of transaction data reveals a mixed landscape. There has been a significant 60% surge in small transactions below $1, indicating heightened retail participation. Additionally, transactions ranging from $1 to $10 have grown by 4.76%, displaying an increase in smaller investors.
Conversely, mid-sized transactions within the $10 to $100k range have declined, hinting at reduced activity from larger players. Moreover, transactions exceeding $1 million have witnessed a complete disappearance, plummeting by 100%, a signal that institutional and high-net-worth investors are currently inactive.
Overcoming Strong Resistance: Fantom’s Path Forward
After successfully breaking out from its descending symmetrical triangle, FTM is currently testing critical resistance at $0.56, which will dictate its immediate direction. A breakthrough could set the stage for further advancements towards key levels at $0.85 and $1.43.
However, a failure to maintain levels above $0.56 might result in a retraction towards the $0.40-$0.45 range. While market sentiment favors bulls, clearing resistance barriers is essential for a sustained upward trend.
The upcoming days will play a pivotal role in determining whether FTM continues its ascent or faces a setback.
MVRV Ratio Fluctuations: Evaluating Profit-Taking Scenarios
The declining MVRV Long/Short Difference signals a shift in market sentiment, potentially indicating profit-taking activities among traders who entered at lower price points.
This could introduce selling pressure, posing challenges for FTM’s upward momentum. Maintaining strong demand levels will be crucial in absorbing selling pressures and steering prices higher.
Sustainability of FTM’s Rally: Key Considerations
With robust signs of bullish momentum, including increased network activity and a breakout from a significant technical pattern, Fantom appears poised for further advancements. However, the decrease in whale transactions and a descending MVRV ratio call for a cautious approach.
A successful conversion of $0.56 into a support level could pave the way for FTM to target $0.85. Failure to do so might prompt a retracement. The token’s ability to hold above resistance levels will be instrumental in shaping its future trajectory.