Fantom’s ‘Cup and Handle’ setup can push FTM to as high as…

by
  • Fantom’s bullish breakout targets $1.40, driven by a textbook cup-and-handle pattern.
  • On-chain metrics and rising Open Interest highlighted strong market confidence in FTM’s uptrend.

As a seasoned analyst with over two decades of experience in the crypto markets, I’ve seen my fair share of cup-and-handle patterns, but none as promising as Fantom’s current setup. The textbook bullish breakout and the rising open interest are clear indicators that FTM is gearing up for a significant price surge.

At the moment of publishing, Fantom [FTM] was exchanging hands at approximately $1.28, marking a 5.01% rise over the past 24 hours. There’s an increasing sense of excitement among investors about its current market behavior.

This increase follows a standard pattern known as a “cup-and-handle” formation on the weekly graph, which usually indicates an upward movement or continuation of a positive trend.

Presently, FTM’s trading behavior indicates it has the strength to attempt overcoming the significant $1.40 barrier. But, successfully breaching this point depends on continued purchasing power and advantageous market circumstances. The cryptocurrency community is keeping a keen eye on its future actions.

Technical analysis: FTM targets $1.40 resistance

Each week’s FTM analysis underscores the importance of the cup-and-handle breakout, a pattern that frequently signals the beginning of strong upward movements in the market. In line with this trend, it appears that the price of FTM is also following suit.

At present, the $1.40 mark serves as a significant challenge, functioning both as a mental block and a crucial technical point.

Furthermore, the persistent creation of higher bottoms accompanied by escalating purchase activity bolsters the argument for the bullish outlook on FTM. Should this trend persist, breaking past $1.40 may trigger a fresh wave of significant growth for the cryptocurrency.

Technical indicators suggest sustained strength

According to various technical indicators, FTM’s optimistic forecast appears validated. For example, the Moving Average Convergence Divergence (MACD) displayed a robust bullish crossover, where the MACD line stood at 0.1546, significantly higher than the signal line at 0.0769. This suggests that the positive trend will persist.

Additionally, the Average Directional Index (ADX) stood at 26.39, indicating a growing strength in the trend and supporting the positive outlook of the market. This implies that FTM may have enough power to challenge and possibly break through its nearby resistance thresholds.

FTM on-chain signals underline market confidence

The surge in FTM’s price is backed by on-chain indicators. A rise of 0.45% in network growth indicates higher user involvement, while a 0.62% increase in large transactions suggests growing institutional interest.

Although the “In the Money” figure slightly hints at a bearish trend with a percentage of -0.37%, the concentration metric at -0.10% suggests that significant investors are maintaining their positions, thereby reinforcing the current upward momentum. In essence, these metrics underscore a robust market optimism.

Open Interest reinforces the bullish sentiment

The amount of bets, or Open Interest (OI), in FTM has jumped by 4.75%, now standing at a total of $377.65 million. This rise suggests a rising faith among traders and indicates a heightened curiosity amongst them about FTM’s potential to break through its current resistance level.

Therefore, the rise in OI further solidifies the case for FTM’s bullish outlook in the near term.

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

Based on its solid underlying technology, impressive on-chain statistics, and increasing Open Interest, Fantom appears poised to overcome the $1.40 resistance. If the current trend continues, Fantom might not just exceed this mark, but also pave the way for a prolonged upward trend in the altcoin sector.

Read More

2024-12-14 16:07