Over the past week, Fantom [FTM] has witnessed a significant surge in trading volume, a trend that has strengthened in recent days. The increasing activity on the Fantom network, coupled with the rising volumes of decentralized applications (dApps), has provided further confidence in the project’s potential.
While the token was initially trading below a bearish breaker block, the growing momentum and trade volume suggest a potential breakout in the near future.
Positive Technical Indicators for Fantom
Fantom has successfully surpassed the local highs at $0.54, which have been prevalent since July. This breakout has not only turned the daily market structure bullish but has also been supported by the Directional Movement Index, signaling a strong uptrend.
The +DI (green) and ADX indicators both surpassing 20 indicate a significant uptrend, while the Awesome Oscillator reflects the bullish momentum of the past week. Despite a slight pullback from $0.683 to $0.633, Fantom managed to post impressive gains of 44.7% in just four days.
The Chaikin Money Flow (CMF) standing at +0.19 indicates substantial capital inflow into the Fantom market. This heightened demand over the past week reinforces the bullish sentiment and increases the likelihood of a breakout above $0.66.
Key resistance levels to watch include the $0.66 and $0.9 zones, both of which served as significant supply zones earlier this year. A successful break and retest of the $0.66 zone could provide swing traders with a lucrative buying opportunity.
Analysis of Liquidation Heatmap
The liquidation heatmap reveals a considerable pool of liquidity ranging from $0.546 to $0.626. During the recent rally, this zone was effectively cleared, leading to a consolidation phase around the $0.63 mark.
Typically, following such a rapid surge, a brief consolidation phase may ensue, followed by a minor retracement to facilitate liquidity above the local highs. This strategy aims to trap late short sellers before propelling the price higher.
If this scenario unfolds as anticipated, Fantom could experience a slight pullback towards the $0.57-$0.58 range before embarking on its next leg of the rally.
Disclaimer: The information provided is solely the author’s opinion and does not constitute financial, investment, or trading advice.