- Fantom’s price tested key levels, with increased network activity signaling a potential recovery.
- Market sentiment showed optimism as bullish liquidations and technical indicators pointed to a reversal.
Phantom [FTM], Trading at $0.7934 at the time of writing, down 2.16% in the past 24 hours, it continued to generate interest despite the current downtrend.
Recent network data showed increased activity, raising the question: could this be the start of a price reversal?
Can FTM break away from the current offering?
FTM’s price remained within a tight range, with critical support at $0.7316 and resistance at $0.9671. A break above this resistance could push the price towards $1.08, a level of significant psychological importance.
However, failure to maintain current support could lead to further losses. The descending triangle pattern visible on the charts suggests that a major price move may be imminent.
Therefore, the next few trading sessions could determine FTM’s short-term trajectory.
Source: TradingView
Does Network Activity Point to a Bullish Future?
Fantom’s blockchain activity was soaring at the time of writing: new addresses increased 38.46%, active addresses increased 23.52%, and zero balance addresses grew 63.51% over the past week.
This increase reflected growing interest and participation in the ecosystem, which could strengthen FTM’s value in the long term.
While these numbers looked promising, consistent growth will be essential to maintain the bullish momentum. Therefore, network activity remains an important indicator to keep an eye on.
Source: IntoTheBlock
The MVRV ratio indicates potential undervaluation
The market value to realized value ratio (MVRV) has fallen to 17.39%, highlighting the reduced profitability for FTM holders.
Historically, such declines have preceded significant price movements, as they often indicate undervaluation.
This could attract buyers looking to take advantage of discounted prices. However, continued selling pressure could also push prices lower. Traders should keep a close eye on sentiment to gauge the market’s next move.
Source: Santiment
Are technical indicators that flash a reversal signal?
The Relative Strength Index (RSI), at 50.37, indicated neutral momentum at the time of writing, with a slight tilt towards a bullish recovery.
Meanwhile, the moving average cross suggested potential volatility as the short-term average approached the long-term average.
Therefore, these indicators point to a possible turning point for FTM’s price, making the coming days crucial for traders.
Source: TradingView
Liquidations indicate that traders remain optimistic
The liquidation trends show $23.06K in shorts against $98.22K in longs, showing bullish sentiment despite recent declines. This imbalance suggests that many traders are positioning themselves for an upward price move.
However, external market forces can still have a negative impact on FTM’s performance. Therefore, liquidation data should be analyzed along with other metrics for a more comprehensive picture.
Source: Coinglass
Read Fantom’s [FTM] Price forecast 2024-25
Fantom’s increasing network activity, alongside bullish liquidation trends and technical signals, indicate the potential for a price recovery.
However, the declining MVRV ratio and resistance levels should be carefully monitored. If FTM maintains its network growth and breaks through key levels, a rally could occur in the coming weeks.