The Fantom (FTM) price has shown promising growth recently, but there are questions about how long this uptrend can last. Despite the initial surge, key indicators are starting to hint that momentum may be fading. The ADX value is falling, suggesting that the strong bullish trend may be losing steam.
Furthermore, while the recent drop in exchange supply provided a boost, the metric’s subsequent stabilization raises doubts about sustained upward pressure. The coming days will be critical in determining whether FTM can sustain gains or face a reversal toward lower support levels.
Fantom price’s current trend may not last long
FTM’s ADX is currently at 28.85, down from 32 a day ago. Prior to this, the ADX had risen from 15 to 32 in just two days, reflecting a strong and rapid increase in trend strength.
However, the recent decline suggests that the momentum may be losing some strength, and traders are closely watching to see if the trend continues to fall.
The ADX (Average Directional Index) measures the strength of the trend, whether it is bullish or bearish. It ranges from 0 to 100, with values above 20 indicating a trending market and any value above 30 indicating a strong trend. Driven by this strong uptrend, the price of FTM has surged 14% in the past seven days.
However, the fact that the ADX has turned down from above the 30 threshold suggests that the current upward momentum may be fading. If the ADX continues to turn down, it could mean that the trend is losing strength, potentially signaling an end to the recent bullish rally.
Prior to the recent surge, FTM supply on exchanges dropped significantly
Between October 13 and 14, the supply of FTM on exchanges decreased from 712 million to 688 million. At the same time, the price increased, with FTM rising from $0.66 on October 13 to $0.78 on October 15.
The reduction in exchange supply indicates a decrease in the number of tokens available for sale, coinciding with the subsequent price surge.
Typically, when users move tokens to exchanges, it is considered a bearish sign, as they may be preparing to sell. Conversely, when tokens are withdrawn from exchanges, it often signals bullish sentiment, indicating that holders do not plan to sell anytime soon and may be anticipating a price increase.
After an initial drop in FTM’s exchange supply, the volume has stabilized, but it remains critical to continue monitoring this metric. Changes in exchange supply can provide valuable insights into potential shifts in market sentiment.
Fantom Price Prediction: Can It Rise Back to $0.96 in October?
The EMA (Exponential Moving Average) lines for FTM are currently bullish with a healthy gap between the short-term and long-term lines. This suggests strong upside momentum as the price maintains a clear lead over the recent trend.
When the short-term moving average is much higher than the long-term moving average, it indicates that the recent price trend is more favorable than the long-term moving average, reflecting the bullish sentiment in the market.
EMAs are used to smooth price data by giving more weight to recent prices. This helps traders identify the direction of the trend and spot changes in momentum earlier.
However, after the recent price surge, FTM’s short-term EMAs have begun to bend downwards. If they cross below the long-term EMAs, a “death cross” will be formed, which is a bearish signal that the trend may reverse and move further down.
If this happens, the price of FTM could test the $0.65 and $0.59 support levels. On the other hand, if the uptrend resumes in strength, FTM could continue to rise and challenge the $0.76 resistance level – a level that it failed to break recently. A break above this point could push FTM back to $0.85 or even $0.96, which is the highest price since May.