Fantom (FTM) has been making waves in the cryptocurrency market, with its native token FTM showing signs of a bullish reversal. Despite facing a significant price drop of over 56% in recent times, it seems like the downtrend is finally coming to an end.
Technical analysis of Fantom (FTM) by CoinPedia indicates that the token has found strong horizontal support at the $0.60 level. This level has served as a crucial bounce point for FTM since September 2024, with the token experiencing significant upside momentum each time. What’s more, the altcoin has now displayed a bullish divergence on its daily chart.
For those unfamiliar with the term, a bullish divergence occurs when an asset’s price is making lower lows while a technical indicator, such as the Relative Strength Index (RSI), is making higher lows. This is typically seen as a signal to buy, as it suggests a potential price bounce or reversal.
Based on recent price action, if FTM manages to hold onto the $0.60 support level, there is a high likelihood that it could surge by 50% to reach the $1.05 mark in the near future. Currently trading around the $0.70 level, FTM has already shown signs of recovery, with a price rally of over 9.5% in the past 24 hours. This has led to increased participation from traders and investors, with FTM’s trading volume rising by 26% during the same period.
In a bullish sign for the token, data from on-chain analytics firm Coinglass reveals that 73.7% of traders are currently holding long positions on FTM, while only 26.3% are holding short positions. This strong bullish sentiment among traders, combined with the technical analysis pointing towards a potential price surge, suggests that the bulls are firmly in control and could help FTM reach its predicted target.
Overall, Fantom (FTM) is looking primed for a significant upside momentum, with key support levels holding strong and bullish indicators pointing towards a potential price rally in the near future. Traders and investors are keeping a close eye on FTM as it looks set to make a comeback in the cryptocurrency market.