Fantom [FTM] has clearly broken out from a descending channel and is trading at $0.707 at press time, up 5.1%.

The surge, coupled with a 56.79% surge in 24-hour trading volume, caught the attention of the cryptocurrency market.

As traders eye potential all-time highs, one question remains: Can FTM sustain the momentum and capitalize on its breakout?

Moving averages and key levels to watch

FTM’s technical indicators offer a bullish outlook for its near-term price action. At press time, the RSI was at 60.35, suggesting that buying pressure is increasing.

However, the market still has room before entering the overbought territory (above 70), which means there is potential for the market to rise further.

Moreover, MACD also confirms that bullish momentum is building. The MACD line is at 0.0405 and has broken above the signal line at 0.0321.

This bullish crossover suggests that the upward momentum is accelerating, further strengthening the potential for higher prices.

Therefore, the convergence of these two indicators suggests that FTM is likely to continue rising in the near term as long as the momentum holds.

FTM on-chain metrics: What do they reveal?

FTM’s on-chain metrics show strong momentum. Net network growth increased by 0.20%, indicating steady adoption, while concentration metrics suggest large holders, or whales, are maintaining their position.

Large trades also increased by 0.24%, indicating growing interest from institutional players.

However, the “profitability” metric remains neutral, indicating that not all investors are currently in profit. Nevertheless, overall on-chain data suggests that FTM is still well positioned for further growth.

Volume and open interest: driving the rally?

At press time, FTM’s trading volume, an important indicator of market interest, has risen 42.25% over the past 24 hours to $804.65 million.

Open interest in futures contracts also jumped 7.57%, reflecting growing confidence among traders. Therefore, the market believes that FTM still has room to grow.

Will FTM hit a new high?

Given FTM’s technical breakthrough, positive on-chain metrics, and rising transaction volumes, it seems poised for further gains.

Therefore, as long as FTM breaks above the critical resistance at $0.720 and holds strong support, it is likely to test new highs soon.