Fantom’s price has recently broken free from a downward trend, indicating a potential rally towards a significant short-term target of $1.47. Retail investors are driving the current upswing, and technical indicators suggest that FTM could experience impressive growth in the coming days.
FTM Breaks Out of Consolidation Phase
FTM has recently made a strong move by breaking out of a descending triangle formation on the 4-hour chart. This technical pattern, which typically indicates a period of consolidation within a narrow price range, has now shifted towards an upward trend. The breakout suggests the potential for a significant price rally, especially as FTM prepares to challenge a major resistance level that has previously hindered its upward movement.
At the time of writing, FTM was trading at $0.85, and if the upward momentum continues, the cryptocurrency could reach $1.47, representing a remarkable 73.28% potential increase. However, it is important to note that the asset is facing strong resistance, and the rally may experience some setbacks before a steady climb.
Retail Investors Propel FTM’s Momentum
One of the key drivers behind FTM’s recent gains is the increased participation of retail investors. A sharp 17.86% rise in the number of Active Addresses indicates growing retail interest in the asset. Active Addresses are wallet addresses that have conducted at least one transaction during a specific time frame, highlighting the increasing involvement of traders in the market.
As retail traders continue to drive up the price, the absence of significant whale activity suggests that large investors have not yet re-entered the market. Whale transactions, which can significantly influence price movement, have slowed down, with large trades dropping to just 35.86 million FTM, worth approximately $29.22 million. This reduction in whale involvement suggests that the rally is primarily fueled by smaller traders.
Should institutional investors or large holders re-enter the market and increase their purchases, FTM could experience an even stronger push towards higher levels. The influx of whale activity would likely generate additional upward pressure, further reinforcing the asset’s bullish outlook.
Technical Indicators Point to a Potential Golden Cross
The technical indicators for FTM suggest that the cryptocurrency is on the verge of a full-fledged rally. One notable signal is the potential formation of a Golden Cross. This bullish pattern occurs when the MACD (Moving Average Convergence Divergence) blue line crosses above the orange Signal line, indicating a shift in momentum towards the bulls.
A Golden Cross is often followed by a significant price surge, making it a key signal for traders looking to capitalize on upward price movements. Other technical metrics, such as a surging funding rate and a rising long-to-short ratio, also support the view of a potential rally.
Strong Market Sentiment Underpins FTM’s Upswing
The market sentiment surrounding FTM remains bullish, with key indicators supporting the idea of further gains. The funding rate for FTM has surged to 0.0330%, indicating that buyers (bulls) are in control. This suggests that more market participants are betting on the price of FTM rising, which is typically a strong signal for continued upward momentum.
Additionally, the long-to-short ratio has risen above 1, reaching 1.0317. This means that there are more long positions than short positions in the market, further confirming the bullish sentiment and strengthening the case for a potential rally.
FTM’s Path to $1.47 and Beyond
FTM’s recent breakout from its consolidation phase, combined with strong technical indicators and rising retail interest, suggests that the cryptocurrency is poised for further growth. The $1.47 target seems attainable, and if the current momentum persists, FTM could even surpass this level in the coming weeks.
The involvement of institutional investors and whale traders will be crucial for FTM’s continued success, as they could help propel the asset to new highs. With the right conditions in place, FTM could experience a major rally, making it a cryptocurrency to closely monitor in the near future.
