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Fantom (FTM) shows signs of renewed market interest as network activities surge, sparking hopes for a potential price recovery.
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Despite a recent price decline of 2.16%, increased blockchain activity and positive market sentiment might signal a reversal.
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According to COINOTAG, “The combination of bullish liquidations and rising user engagement indicates that FTM may bounce back.”
Explore how Fantom’s recent surge in activity and bullish trends could indicate a possible price recovery for FTM, despite current market challenges.
Can FTM break free from its current range?
FTM is currently trading in a narrow price range, with robust support at $0.7316 and significant resistance at $0.9671. A decisive breakout above this upper level could propel the price towards $1.08, a threshold known for its psychological impact among traders.
Conversely, if FTM fails to maintain momentum and loses support, it could be heading for a downturn. The descending triangle pattern forming on the charts hints at a significant price movement on the horizon. Hence, the forthcoming trading sessions will be critical in determining the asset’s direction.
Source: TradingView
Is network activity hinting at a bullish future?
Fantom’s recent data reveals a surge in blockchain activity, with new addresses increasing by 38.46%, active addresses up by 23.52%, and zero balance addresses rising sharply by 63.51% over the past week.
This spurt in activity suggests a burgeoning interest within the ecosystem, potentially positioning FTM for enhanced long-term valuation. However, maintaining this growth trend is imperative to sustain bullish momentum, marking network activity as a key metric for further analysis.
Source: IntoTheBlock
MVRV ratio signals potential undervaluation
The latest Market Value to Realized Value (MVRV) ratio, currently at 17.39%, indicates diminished profitability for FTM holders.
Historically, such decreases have commonly signaled periods of significant price movement due to perceived undervaluation, thereby attracting potential buyers eager to exploit lower pricing. Nevertheless, the ongoing selling pressure could still impact prices negatively, necessitating close attention to trader sentiment to assess the market’s trajectory.
Source: Santiment
Are technical indicators flashing a reversal signal?
The Relative Strength Index (RSI) stands at 50.37, reflecting a neutral momentum, albeit leaning slightly towards a bullish recovery at present.
Furthermore, a moving average cross suggests the potential for increased volatility as the short-term moving average converges with its long-term counterpart.
This pattern signals that traders should remain vigilant, as recent trends indicate that a significant turning point may be on the horizon.
Source: TradingView
Liquidations suggest traders remain optimistic
Recent liquidation data reveals a notable $23.06K in short positions countering $98.22K in longs. This reflects a prevailing bullish sentiment among traders, despite the recent downturn.
This substantial imbalance indicates that many are betting on an upward movement for FTM’s price in the near term. However, external factors could still disrupt this trend, suggesting that liquidation figures should be considered alongside other financial metrics for a holistic view.
Source: Coinglass
Read Fantom’s [FTM] Price Prediction 2024-25
In summary, Fantom’s increasing network activity, alongside positive liquidation trends and indicative technical signals, suggests the potential for a price recovery.
However, continuous monitoring of the decreasing MVRV ratio and critical resistance levels is essential. If FTM can sustain its network growth and successfully breach key price thresholds, a rally could be on the horizon in the coming weeks.
