Fantom’s Growth Signals Potential for FTM Price Rally: Here’s Why

• Fantom’s price is trading in a narrow range, and technical indicators suggest a potential breakout or further decline.

• Market sentiment remains cautiously optimistic, but traders must monitor resistance levels and broader trends for clarity.

Fantom (FTM) has captured attention despite a recent downtrend. It was trading at $0.7934 at press time after a 2.16% daily drop. Surging network activity and critical technical levels suggest a potential for a price rebound, though challenges remain.

Critical Price Levels and Technical Patterns

FTM’s price is confined to a narrow range, with key support at $0.7316 and resistance at $0.9671. A decisive breakout above the resistance could propel the price toward $1.08, a psychologically significant level. Conversely, losing support might trigger additional declines. The descending triangle pattern on the charts hints at a major move, signaling heightened volatility in the near term.

Indicators such as the Relative Strength Index (RSI), which stood at 50.37, reflect neutral momentum with a slight bullish inclination. The proximity of short-term and long-term moving averages further suggests potential price volatility, making upcoming sessions pivotal for FTM traders.

Surging Blockchain Activity Highlights Ecosystem Growth

Fantom’s blockchain activity has experienced notable increases. In the past week, new addresses rose by 38.46%, active addresses increased by 23.52%, and zero balance addresses surged by 63.51%. This growth underscores rising interest and participation in the Fantom ecosystem, which could contribute to the asset’s long-term value.

Sustained growth in network activity will be essential for maintaining bullish momentum. While the current metrics are promising, they must translate into consistent adoption and usage to bolster market confidence.

Market Sentiment and Liquidation Trends

The Market Value to Realized Value (MVRV) ratio, now at 17.39%, indicates reduced profitability for holders. Historically, such levels have preceded significant price movements, often signaling undervaluation and attracting buyers. However, ongoing selling pressure remains a risk that could cap gains.

Liquidation data offers additional insights into market sentiment. With $23.06K in shorts compared to $98.22K in longs, traders appear optimistic about FTM’s recovery potential. Despite this bullish positioning, external market dynamics could still influence price action, emphasizing the importance of monitoring broader trends.

Fantom’s rising network activity, optimistic liquidation trends, and mixed technical indicators suggest the potential for a recovery. However, challenges such as resistance levels and a declining MVRV ratio require close attention. A sustained breakout above key levels, supported by continued ecosystem growth, could pave the way for a rally in the coming weeks.

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