Fantom Network Continues to Grow: Is the FTM Price About to Break Through?

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Despite mixed signals from technical indicators, the recent growth in network activity for Fantom (FTM) has sparked market hopes for a price rebound. At the time of writing, the FTM price is $0.7934, down 2.16% in the past 24 hours. Although it is in a downward trend in the short term, traders remain optimistic about its potential recovery.

Growth in Network Activity: A Signal for Rebound?

The blockchain activity of Fantom has recently seen significant growth, with new addresses increasing by 38.46% in the past week, active addresses rising by 23.52%, and zero balance addresses increasing by 63.51%. This growth indicates a growing market interest in its ecosystem, potentially laying the foundation for the long-term value of FTM.

Key Support and Resistance: Critical Breakthrough Points

Currently, the price of FTM is within a narrow range of $0.7316 to $0.9671. A breakout above the resistance level of $0.9671 could push the price towards $1.08, which is a key psychological level. However, failing to hold the current support level could lead to further declines.

Technical Indicators: Potential Turning Point

The Relative Strength Index (RSI) is at 50.37, indicating that the current momentum is neutral but slightly bullish. The short-term moving average is close to the long-term moving average, and the crossover of moving averages suggests potential volatility. These technical signals imply that the FTM price may be approaching a turning point, which will be crucial for traders in the coming days.

MVRV Ratio and Liquidation Data: Market Sentiment

The MVRV ratio is at 17.39%, indicating that FTM may currently be undervalued, which is often a signal before significant volatility. Liquidation data shows that despite the price drop, long positions dominate, indicating a bullish sentiment towards price increases. Short positions are at $230,600, while long positions are at $982,200, reflecting traders' expectations for a rise.

Conclusion

Fantom is currently facing the challenge of breaking through critical levels, but its consistently growing network activity and bullish market sentiment suggest that a price rebound is likely. However, traders should closely monitor the MVRV ratio and resistance levels, remain cautious, and be prepared for potential volatility.

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