Fantom Trading Near $1 With Increasing Volumes
Fantom (FTM) saw significant growth in November, currently trading at $0.957. Over the past 24 hours, its price has risen by 8%, while trading volume on CoinMarketCap increased by more than 30%.
In November, FTM emerged as one of the best-performing altcoins, recording a 48% monthly gain. This growth pushed the market value to realized value (MVRV) ratio to a 3-month high of 1.59, indicating that the average FTM holder now enjoys a 59% profit.
MVRV Ratio Indicates Room for Further Growth
The rising MVRV ratio highlights increasing profitability for Fantom holders. However, current levels have not yet entered the "overvalued" zone, suggesting potential for further upside.
Analysts recommend monitoring an MVRV increase above 2, which could signal market overvaluation and a possible trend reversal.
Wallet Profitability Surges to 58%
The In/Out of the Money metric reveals a rise in profitable Fantom wallets. Over the past seven days, the percentage of profitable wallets increased from 50% to 58%, while wallets at a loss dropped from 46% to 39%.
This growing profitability supports bullish sentiment. However, over 22 million FTM tokens were purchased in the price range between $0.98 and $1.24, potentially creating resistance as investors might take profits at higher levels.
Fantom Breaks Out of Expanding Wedge Pattern
On the daily chart, Fantom broke above an expanding wedge pattern, a bullish signal for continued growth. This breakout was accompanied by increased trading volume, further indicating upward momentum.
Bullish momentum is also supported by the moving average convergence divergence (MACD) and Chaikin Money Flow (CMF), which stands at a positive 0.23, demonstrating buyer dominance.
Fantom’s next target could be the Fibonacci level of $1.268, representing a possible 33% price increase, provided positive market sentiment and buying activity persist.
Derivatives Traders Bet Against Fantom
While the spot market shows strong bullish signals, derivatives traders are taking short positions against Fantom.
The Long/Short Ratio, which had been on an upward trajectory throughout the week, has now dropped from 0.97 to 0.92, indicating that traders are opening leveraged short positions to hedge against potential declines.
Conclusion
Fantom continues to show strong bullish signals, with its price potentially climbing to $1.268 if the market sustains its positive sentiment. However, traders should monitor resistance levels, profit-taking activity, and the growing short positions in the derivatives market, which could indicate a short-term pullback.
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