Fantom's increased activity raises hopes of a rebound as technical indicators flash mixed signals.
Fantom Network Grows: A Sign of an Upcoming FTM Price Rise?
Fantom price tested key levels, with increased network activity indicating a potential recovery.
Market sentiment showed optimism as bullish liquidations and technical indicators hinted at a reversal.
Phantom [FTM], trading at $0.7934 at press time with a 2.16% decline in the past 24 hours, continues to generate interest despite the current downtrend.
Recent network data has shown increased activity, raising the question: could this mark the beginning of a price reversal?
Can FTM break out of its current scope?
FTM price has been in a tight range, with crucial support at $0.7316 and resistance at $0.9671. A break above this resistance could push the price towards $1.08, a level of great psychological importance.
However, failure to hold the current support could lead to further losses. The descending triangle pattern visible on the charts indicates that a major price move could be imminent.
Therefore, the next few trading sessions could determine the short-term path of FTM.
FTM chart analysis
Source: TradingView
Does network activity indicate a bullish future?
Phantom blockchain activity is up at press time, with new addresses up 38.46%, active addresses up 23.52%, and zero balance addresses up 63.51% in the past week.
This increase reflects the growing interest and participation in the ecosystem, which could boost the value of FTM in the long term.
However, while these numbers look promising, consistent growth will be necessary to maintain the upward momentum. Therefore, network activity remains a key indicator to watch.
FTM Headlines Statistics
Source: IntoTheBlock
The MVRV ratio indicates a potential downside to valuation.
The market value to realized value (MVRV) ratio declined to 17.39%, highlighting the declining profitability for FTM holders.
Historically, these declines have preceded large price movements, as they often indicate a decline in value.
This can attract buyers looking to take advantage of the discounted prices. However, continued selling pressure can push prices lower. Traders should keep a close eye on sentiment to gauge the market’s next move.
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Source: Santiment
Are the technical indicators flashing a reversal signal?
The Relative Strength Index (RSI), at 50.37, indicated neutral momentum at the time of pressure, with a slight bias towards an upward recovery.
Meanwhile, the moving average suggested potential volatility, as the short-term average approached the long-term average.
Therefore, these indicators point to a potential turning point for the FTM price, making the coming days crucial for traders.
Source: TradingView
Liquidity indicates that traders remain optimistic.
The liquidation trend shows $23.06K in shorts versus $98.22K long ago, revealing bullish sentiment despite recent declines. This imbalance suggests that many traders are planning for an upward price move.
However, external market forces can still impact FTM performance. Therefore, filter data should be analyzed alongside other metrics to get a more comprehensive view.
Source: Coinglass
