- Fantom’s momentum was in overbought territory, at press time, and could see a pullback
- Strong demand during the $1 breakout was a long-term bullish sign
As a seasoned analyst with over two decades in the cryptocurrency market, I’ve seen my fair share of bull runs and bear markets. The current momentum of Fantom [FTM] is quite impressive, but I can’t help but feel that a pullback might be imminent.
In simpler terms, the value of Fantom’s [FTM] has risen back up to around $1.22 and appears strong enough to keep pushing prices further up. It looks likely that it will attempt to break through the resistance levels around $1.44 – $1.50 in the near future.
As Bitcoin (BTC) surpasses $100k at an early stage of its development, it’s reasonable to expect similar upward trends for other cryptocurrencies (altcoins) over the next few months.
Time for an FTM pullback?
On the day-to-day graph, smashing through the $1 mark significantly strengthened bullish confidence. This very same threshold was reassessed as a support point on the 28th of November. Throughout this breakout, the trading activity swelled noticeably to reflect the robust demand for FTM.
The A/D indicator experienced an increase due to the surge in trading activity. This increase mirrored growing demand as the value of Fantom kept climbing. In the last five days, the $1.22 mark has switched to serve as a support level.
Prior to this point in March, the altcoin had experienced a peak. Subsequently, it plunged into a six-month declining trend. Potential resistance points could be found at $1.44, $1.68, and $1.79.
The Stochastic Relative Strength Index (RSI) indicated that the market was excessively bullish, with high levels also seen on the daily chart. This doesn’t necessarily mean an immediate correction, but it could be a warning sign of market saturation. In reality, the market has surged by a remarkable 105% within approximately two weeks.
The 23.6% extension level resistance at $1.44 might rebuff the bulls temporarily.
Speculative interest continued to grow
The Open Interest for FTM also increased, mirroring its price rise. This suggests a robust optimistic outlook among traders in the Futures market.
Read Fantom’s [FTM] Price Prediction 2024-25
Over the last seven days, the funding rate has been gradually increasing, indicating a wider gap between current (Spot) and future (Futures) prices. This discrepancy can be attributed to an increase in speculative involvement, suggesting strong optimism among traders about the near future.
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2024-12-07 16:07