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Fantom (FTM) shows promising bullish momentum, characterized by increased network activity and a breakout from a descending triangle formation.
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Despite these positive signals, significant resistance at $0.56 may challenge further upward movement and lead to potential profit-taking.
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According to recent data from COINOTAG, “The number of holders ‘in the money’ has surged by over 20%, indicating a growing base of profitable investors.”
Fantom displays strong bullish signs with rising activity but faces resistance at $0.56; profit-taking may influence its short-term trajectory.
FTM Addresses are Growing, but is it Enough?
At the time of writing, network activity on Fantom was surging, with new addresses increasing by 35% over the past week. This uptick signals growing adoption and user engagement. Such growth is typically a bullish indicator that can foster optimism among traders and investors.
Additionally, active addresses have risen by 10%, reinforcing the expansion of the network. However, a striking 52.86% jump in zero-balance addresses suggests that some traders may be exiting their positions or consolidating funds, potentially signaling profit-taking.
While the surge in user engagement is positive, it could lead to temporary slowdowns in momentum if profit-taking becomes significant. Sustained demand is vital for maintaining the current upward trajectory.
Source: IntoTheBlock
Transaction Activity is Shifting: Where Are the Whales?
Transaction data reflects a mixed landscape. Transactions under $1 have surged by 60%, indicating heightened retail involvement. Additionally, transactions between $1 and $10 have experienced a modest increase of 4.76%, suggesting influx from smaller investors.
However, mid-sized transactions ranging from $10 to $100k have declined, indicating that larger market participants are currently less active. Interestingly, transactions exceeding $1 million have virtually vanished, dropping by 100%, signaling that institutional and high-net-worth investors are staying cautious.
Source: IntoTheBlock
Fantom Faces Strong Resistance; Can It Breakthrough?
FTM has convincingly broken out of its descending symmetrical triangle, signaling potential bullish prospects. Currently, the price is encountering critical resistance at $0.56, a level that will likely dictate immediate market direction. Should FTM breach this threshold, the next target levels would be $0.85 and $1.43.
Conversely, if it fails to maintain levels above $0.56, a pullback might occur, testing lower ranges around $0.40-$0.45. While market momentum is favoring bulls, overcoming resistance levels will be necessary for a sustained uptrend.
Thus, the upcoming days are pivotal in determining whether FTM will continue its upward trajectory or face a downturn.
Source: TradingView
MVRV Ratio Declines; Is Profit-Taking Underway?
The MVRV Long/Short Difference has seen a notable decline, indicating a shift in the prevailing market sentiment. This metric’s downturn often signals that traders who acquired assets at lower prices are now cashing out, which could introduce selling pressure and potentially hinder FTM’s upward trajectory.
Moreover, if profit-taking continues unabated, the token may struggle to maintain its recent uptick. However, should demand remain robust, buyers could offset selling pressure and propel prices higher.
Source: Santiment
Can FTM Sustain the Rally?
Fantom demonstrates robust bullish signals with rising network activity and a breakout from a key technical pattern. Nevertheless, the decline in whale transactions coupled with a decreasing MVRV ratio calls for caution among investors.
If FTM is able to flip the $0.56 resistance into a support level, it could potentially push towards $0.85 in the near future. However, failure to achieve this could lead to a retracement.
The ability of the token to maintain levels above significant resistance will be crucial in determining its next market move.
