Fantom (FTM) price has been showing consolidation for a while and it may continue. This is due to the altcoin not showing a strong directional trend for weeks. However, there is currently a buying signal in on-chain metrics, which could help FTM escape from consolidation.
Signs of Rise in FTM
Fantom's price trading above $0.63, as supported by the Moving Average Convergence Divergence (MACD), is a good sign that the altcoin is safe from further decline. This technical analysis tool measures the relationship between a token's price and its two moving averages. It provides information about momentum and potential buying or selling signals. The indicator line crossing over the signal line confirms a bullish transition. As these lines converge, this could be the expected outcome.
When this occurs, Fantom's price could become suitable for an increase. Fantom also shows a difference in the price daily active addresses (DAA) indicator. This can be seen as a buying signal suggesting an ideal accumulation zone. This measure evaluates the relationship between a token's price and the number of active addresses transacting on the network. It shows potential discrepancies between market valuation and network usage trends.
Support Line in FTM
A selling signal can be observed when a token's price rises and participation decreases. Conversely, increasing participation and falling prices, as currently seen in FTM, indicate a buying signal. If investors choose to make the most of this opportunity and prefer to stock up on FTM supply, a recovery could soon be seen. At the time of writing, Fantom's price was $0.67, maintaining its presence above the $0.63 support line. This support line has been tested several times this year and has remained intact since the beginning of March.
The situation is the same at the resistance block of $0.79 and $0.88. This block has been tested as support and resistance and is generally difficult to breach or overcome. Even if FTM manages to record a rise, the rise will be halted at the lower boundary of the resistance block at $0.79. From that point, it is unclear whether it will breach $0.80 or not. However, if the $0.63 support is broken, Fantom's price could record a significant drop. Falling below $0.55 would invalidate the bullish thesis and could allow FTM to record further losses.