During the previous month, Fantom [FTM] has sustained its upward momentum, securing substantial profits and steadily driving its value upwards. Within the last day, the asset saw a 2.73% increase, fueled by heightened buying interest and growing trader assurance.
Trade volume experienced a modest uptick of 6.51%, hitting $1.30 billion in the recent day. This slight rise implies that while sentiment remains positive, traders are proceeding cautiously, mindful of potential short-term obstacles.
Growing Number of Active Buyers as Market Interest Expands
Presently, the count of daily active addresses (DAA)—an essential gauge of market participation—has witnessed a notable surge. This metric monitors the engagement of individuals trading an asset, highlighting an increasing level of activity.
The recent spike in active addresses, paired with a price increase, indicates a bullish sentiment in the market. Over the past week, DAA has soared by an impressive 28.25%, indicating a heightened interest in FTM.
This mounting interest is further supported by the Active Address Ratio, which assesses the ratio of active addresses to those holding balances. This ratio has elevated, with an average figure of 0.60%, indicating a significant rise in the addresses currently holding FTM.
These patterns suggest a deepening commitment from market participants over the long term. The data reveals that many of these holders may be strategizing to retain FTM as part of a prolonged investment plan.
Challenges Ahead for FTM’s Positive Momentum
Despite the bullish indicators on-chain for FTM, there is now a notable obstacle in the form of a key resistance level.
Following a successful breakthrough above the neckline of a bullish inverse head-and-shoulders pattern on the daily chart, FTM’s upward movement has paused at the $1.22978 resistance level. This level has temporarily impeded the token from reaching its initial target of $1.68.
In order for FTM to surpass this resistance, there needs to be an uptick in trading volume alongside price action. If achieved, FTM could exceed its immediate goal and embark on an upward trajectory towards its ultimate target of $3.38.
Could FTM Experience a Surge in Trading Volume?
Analysis from CryptoCrypto suggests that FTM’s trading volume might soon witness a notable surge, as Open Interest has peaked at a record high of $451.41 million.
The surge in Open Interest indicates a large number of unresolved long contracts, hinting at a positive market sentiment. If this trend continues, it could prompt other market participants to engage in trades, further propelling the momentum.
Consequently, FTM appears well-prepared for a sustained rally, potentially leading to further profits.