Today, the cryptocurrency market saw a slight decrease, with most alternative coins showing negative trends. However, Fantom [FTM] has stood out by recording a 4% increase, reaching a price of $0.511 at the time of this writing.
FTM has emerged as one of the best-performing assets in the market over the past week, recording a 15% increase in value. This surge in price is being fueled by a growing demand, as trading volumes have risen by over 150% according to the latest data from CoinMarketCap.
The growing interest in the Fantom network is also contributing to this upward trend. DappRadar reported a significant threefold increase in dApp volumes on the network, jumping from $3.4 million to $9 million in just 24 hours.
These trading volumes have now reached their highest point since late August.
Activity in decentralized finance (DeFi) on the network is also witnessing a surge, with the Total Value Locked (TVL) on the network increasing by $2 billion to reach $77 billion, as reported by DeFiLlama.
Fantom’s Attempt to Break a Crucial Resistance Level
At the moment, the FTM price is showing an upward trend, trying to break through a significant resistance level at $0.52.
Despite several attempts in recent weeks, Fantom has struggled to surpass this resistance level, with each failed attempt followed by a downward reversal.
The Chaikin Money Flow (CMF) index indicates growing buyer confidence towards a breakout. The metric has turned positive and is moving upwards, signaling that the buying pressure is outweighing the selling pressure.
Additionally, the surge in trading volumes is supporting this upward trend, as indicated by the rising On Balance Volume (OBV) indicator. However, the confirmation of a sustainable trend will be achieved once the smoothing line crosses above the OBV indicator.
If this confirmation occurs, it could facilitate Fantom’s breakthrough of the $0.52 resistance level, opening the path towards a potential rally to the 1.618 Fibonacci level at $0.63.
Conversely, a failure to breach this resistance level could weaken the upward trend and potentially lead the asset price down to the support level of $0.46.
Analysis of the liquidation levels for FTM suggests that a bullish trend could be confirmed if the price nears $0.61.
Information from Hyblock Capital reveals that short positions totaling $12 million could face liquidation in the $0.61-$0.63 price range for FTM.
If the price approaches these levels, short sellers might start closing their positions to limit losses, consequently triggering further price gains.
Furthermore, the Funding Rates for FTM on Coinglass have turned negative, indicating a dominance of short positions. This suggests that many traders are anticipating a potential failure of the rally, with FTM likely heading towards a bearish reversal.