Fantom [FTM] has attracted attention recently by experiencing a surge of approximately 20% in the past 24 hours, pushing its value to $0.836 at the current moment.
Looking at the daily chart, this alternative coin is nearing a crucial resistance point at approximately $0.84, sparking speculation on its upcoming movements.
The market is alive with a mix of technical and on-chain indicators that are fueling optimism for a potential breakout.
What factors are driving the recent uptrend of FTM?
The surge in investor interest can be attributed to FTM’s rebranding to Sonic. This strategic shift showcases adaptations within the Fantom ecosystem with the goal of enhancing the appeal of the blockchain.
In tandem with the rebranding, on-chain data from IntoTheBlock reveals a 186% increase in active addresses. This climb signifies a rise in user engagement with the Fantom network, indicating growing adoption and utility.
Moreover, the decrease in exchange outflows since January 6 has fueled the escalating trading activity. Lower outflows often signal a reduction in selling pressure, setting the stage for potential sustainable price growth for FTM.
The combination of these factors indicates that the recent surge in FTM is not merely speculative but is supported by evolving fundamentals.
Can the $0.84 resistance level withstand the pressure?
The $0.84 mark has historically acted as a formidable obstacle during previous FTM rallies. A breakthrough beyond this barrier could ignite fresh upward momentum, potentially propelling the altcoin towards testing the psychological barrier of $1.
However, failure to surpass this pivotal hurdle might prompt a pullback in Fantom’s price, leading to tests of support levels in the vicinity of $0.80.
What lies ahead for this alternative coin?
With the growing attention garnered by the Sonic rebranding, a wider adoption of FTM’s ecosystem could ensue. The substantial 186% spike in active addresses signifies an expanding network activity, serving as a bullish signal for the long-term growth of FTM.
In the short run, overcoming the $0.84 barrier remains a crucial test for Fantom. A successful breach could pave the way for FTM to explore higher resistance areas.
Presently, the trajectory of this altcoin is dependent on both technical momentum and the sustained positive sentiment surrounding the Sonic rebranding.