FTM’s breakout – Examining if altcoin’s on-chain metrics back its rally odds

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  • FTM’s symmetrical triangle pattern hinted at a potential breakout, with $0.93 as key resistance
  • On-chain metrics were largely bullish, though low active address growth suggested caution

As a seasoned analyst with years of experience navigating the cryptocurrency markets, I find myself intrigued by Fantom [FTM]. The symmetrical triangle pattern and bullish on-chain metrics hint at a potential breakout, but caution is warranted given the low active address growth and declining Open Interest.

Currently, Fantom [FTM] is exhibiting optimistic hints of a possible breakout from a symmetrical triangle configuration, as reinforced by robust on-chain statistics and technical markers. Intriguingly, recent insights indicate an overwhelmingly bullish attitude, with four crucial on-chain factors – network expansion, in-the-money status, concentration, and large transactions – all pointing towards a favorable forecast.

Currently trading at $0.7459 following a 5.26% drop, FTM’s future performance depends on if it can surpass key resistance points. Yet, some signals are not unanimous about an immediate burst, introducing a degree of doubt.

Technical analysis – Is FTM ready for a breakout?

It appears that the price movements of FTM are shaping into a symmetrical triangle pattern, which is typically a precursor for a potential breakout. This pattern, characterized by lines that converge, indicates that FTM could be on the verge of making a substantial move. If this triangle breaks to the upward side, it might signal a surge in bullish sentiments. However, it’s important to note that overcoming existing resistance levels will be essential to verify this movement as legitimate.

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For the token FTM, there’s a noticeable barrier at approximately $0.93 that has typically halted past upward trends. If it manages to surpass this hurdle, it might trigger additional growth with an estimated goal of around $1.20, considering its previous market behavior. However, if it fails to break through this resistance, it could remain stuck within the current period of sideways movement.

The trend in Price Volume (PV) showed consistent increase, suggesting an uptick in buying activity. This pattern implied a positive outlook, hinting that a potential surge could grow stronger if it’s accompanied by a significant rise in trading activities. Nevertheless, without a substantial increase in volume, the surge might lack the thrust required for longevity.

FTM on-chain metrics support a cautiously bullish sentiment

The data from the blockchain suggests an optimistic trend, but with a note of caution. There’s been a modest increase of 0.24% in the number of users joining the network, indicating a steady flow of new participants. Moreover, about 6.52% of FTM wallets currently hold more tokens than they paid for, which could decrease the chances of selling by profitable owners, potentially contributing to price stability.

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The significant increase of 4.12% in our major transaction measure indicates growing interest from institutional and wealthy investors, suggesting a promising outlook for future price fluctuations. Moreover, the minimal concentration of large holdings at 0.05% suggests that ‘whales’ have been holding onto their positions, demonstrating faith in Fantom Token’s long-term value.

Price-DAA divergence signals caution

The gap between the price and daily active addresses (DAA) was quite significant at -61.25%, meaning the price grew faster than user activity on the network. This divergence is a warning sign, implying that the price increase for FTM might not be entirely backed by network activity, which may restrict further positive momentum.

Market sentiment with Open Interest in focus

Currently, the Open Interest for FTM Futures is at approximately $193.63 million, marking a 2.79% decrease. This decrease in Open Interest indicates some apprehension among traders, implying that market participants might be uncertain about making significant moves in either direction. This uncertainty could potentially impact FTM’s capacity to maintain a price breakout.

Read Fantom’s [FTM] Price Prediction 2024-25

A mixed outlook with cautious optimism

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According to our analysis, Fast Token Maker (FTM) showed signs that could indicate optimism as well as cause for concern. Although its technical structures and blockchain statistics seemed to hint at an imminent surge, the minimal increase in daily active users and a small dip in trading volume warranted a note of caution.

Consequently, if the price climbs beyond $0.93, it will provide evidence for potential future growth. If not, the price of FTM may continue to stay within its current pattern of stability.

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2024-11-13 09:11