The price of Fantom (FTM) has been consolidating for some time now and this trend may continue due to the lack of a strong directional trend in the altcoin for several weeks. However, there are indications that FTM may break out of this consolidation phase.
One positive sign is that Fantom’s price is currently trading above $0.63, which is supported by the Moving Average Convergence Divergence (MACD). This technical analysis tool measures the relationship between a token’s price and its moving averages, providing insights into momentum and potential buying or selling signals. The crossing of the indicator line over the signal line confirms a bullish transition. As these lines converge, it is expected that Fantom’s price could increase.
Furthermore, Fantom also shows a difference in the daily active addresses (DAA) indicator. This can be interpreted as a buying signal, indicating an ideal accumulation zone. The DAA indicator evaluates the relationship between a token’s price and the number of active addresses transacting on the network, revealing potential discrepancies between market valuation and network usage trends.
On the support side, Fantom’s price is currently maintaining its presence above the $0.63 support line, which has been tested multiple times this year and has remained intact since March. This suggests that there is strong support at this level.
However, there are also resistance levels to consider. The resistance block at $0.79 and $0.88 has been tested as both support and resistance and is generally difficult to breach. Even if Fantom’s price manages to rise, it is likely to face resistance at the lower boundary of this block at $0.79. It is uncertain whether it will be able to surpass $0.80 or not.
In summary, while there are indications of a potential rise in Fantom’s price, investors should be cautious and conduct their own research. Cryptocurrencies are highly volatile and carry risks. It is important to stay informed and make informed investment decisions.
Disclaimer: This article is not investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
