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Decentralized application volumes on the Fantom network nearly tripled from $3.4 million to $9 million in 24 hours.
Fantom dApp volumes tripled in 24 hours to over $9 million.
High trading volumes fueled an upward rally as FTM attempted to break a critical resistance at $0.52.
The crypto market is down today, with most altcoins trading in the red. However, Fantom (FTM) defied the bearish sentiment with a 4% gain to trade at $0.511 at the time of writing.
FTM has been among the best performing coins on the market over the past week, with a seven-day gain of 15%. The surge is being driven by increased demand, as trading volumes are up more than 150% at the time of writing, according to CoinMarketCap .
The growing interest in the Fantom network is also fueling this surge. According to DappRadar, the volume of dApps on the network has nearly tripled from $3.4 million to $9 million in a 24-hour period.
These volumes have reached their highest level since late August.
Decentralized finance (DeFi) activity on the network is also increasing. According to DeFiLlama, the network’s total value locked (TVL) has increased by $2 billion to $77 billion.
Phantom tests key resistance level
FTM price was making higher highs and was trying to break the critical resistance level at $0.52 at the time of publishing this report.
However, Fantom was unable to break through this resistance for weeks, with each failed attempt being followed by a bearish reversal.
The Chaikin Money Flow (CMF) indicator showed buyers’ confidence in the breakout. The gauge has flipped to positive, and is heading north, indicating that buying pressure has overwhelmed selling pressure.
The uptrend is also supported by higher trading volumes, as the On Balance Volume (OBV) indicator is rising. However, the sustainability of the uptrend will be confirmed once the smoothing line crosses above the OBV indicator.
If this crossover occurs, it could support FTM’s breakout of the $0.52 resistance level and pave the way for a rally to the $1.618 Fibonacci level.
On the other hand, FTM’s failure to break this resistance could weaken the uptrend and cause the asset to drop to the $0.46 support level.
A look at the FTM clearance levels suggests that if the price approaches $0.61, the uptrend will be confirmed.
Data from Hyblock Capital showed that $12 million worth of short positions face liquidation if FTM rises to the $0.61-$0.63 range.
Read Fantom [FTM] price prediction for 2024-2025
If the price approaches these levels, short sellers may start closing their positions to mitigate losses, which would lead to further gains.
Moreover, Coinglass’ FTM funding rates turned negative at the time of writing, indicating a dominance of short positions. This suggests that many traders are expecting the rally to fail, and that the FTM is headed for a bearish reversal.
