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Recent trends indicate a potential market rally for FTM, highlighting breaking resistance levels and increased retail investor activity.
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With FTM’s significant 11.68% price gain in just one day, the asset seeks to recover its substantial losses from the previous month.
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As noted by COINOTAG, “If FTM can maintain its upward momentum, it could significantly challenge previous resistance levels.”
FTM shows promise for a rally, boosted by retail trading activity and a breakout from key resistance levels; could it regain lost ground?
FTM’s build-up to $1.47 in progress
At the time of writing, FTM showed positive momentum, having escaped a descending triangle pattern on its 4-hour chart. This pattern shift indicates that after an extended period of stabilization, the asset is eager to seize higher price levels.
However, a notable resistance zone looms ahead, having stifled upward movement in previous attempts. This intensity could create a potential setback or slow down further advancements, dependent on the prevailing bullish strength.
If FTM can maintain its upward drive from the current price of $0.85, a marketing opportunity exists at $1.47—a remarkable potential increase of 73.28%.
Source: TradingView
To assess whether sufficient momentum exists for a sustained increase, a rigorous evaluation of key on-chain metrics is essential.
Retail investors drive FTM’s rally as whales hold back
FTM’s impressive gains throughout the week clearly indicate that retail investors are significantly contributing to the price surge—despite comprising a smaller slice of the overall market.
This uptick aligns with a notable 17.86% increase in the number of Active Addresses, showcasing a rise in participant engagement. Active Addresses are defined as wallet addresses that have engaged in at least one transaction—whether sending or receiving—within the designated timeframe.
Source: IntoTheBlock
The uptick in active addresses, alongside FTM’s price rally, provides substantial evidence of increasing retail enthusiasm for the cryptocurrency.
In contrast, trading operations involving whale investors appear subdued. As of the latest data, total large transaction volumes have dipped to just 35.86 million FTM, equating to approximately $29.22 million—a significant drop indicating less activity from large holders.
Source: IntoTheBlock
Should whale investors re-engage and bolster their purchasing activities, FTM could experience a robust influx in buying pressure. A resurgence in large-volume transactions would likely provide the necessary fuel to support an upward momentum, enhancing FTM’s trajectory.
FTM’s full rally on the horizon
As it stands, FTM appears to be nearing a complete rally phase, particularly as technical indicators suggest the formation of a Golden Cross pattern—a hallmark that typically signals a rally’s onset.
The Golden Cross is identified on the Moving Average Convergence Divergence (MACD) indicator when the MACD line ascends above the Signal line. Such a crossover is historically associated with a surge in buying momentum, paving the way for subsequent price increases.
This potential uptrend is bolstered by additional metrics such as the funding rate and long-to-short ratios, both indicating a prevailing bullish sentiment in the market.
Source: Coinglass
The funding rate offers insights into market sentiment, reflecting whether bulls or bears dictate terms over a specific period by gauging which side pays the premium for maintaining stability between Spot and Futures markets. Presently, bulls are in the lead, demonstrated by a funding rate soaring to 0.0330%.
Alongside this, the long-to-short ratio has surpassed the 1 mark, currently standing solid at 1.0317 for FTM. This balance indicates a greater presence of long positions compared to shorts, emphasizing a continued bullish trend within the market.
Conclusion
FTM showcases promising signs for a potential rally, driven by substantial retail trading activity and critical technical patterns unfolding on the charts. The market’s future hinges on sustained momentum and potential whale participation.
