contributor
Posted:
- Fantom dApp trading volume triples in 24 hours to $9 million
- The bullish rally accelerated on increasing volume as FTM attempted to break the critical resistance level at $0.52.
The cryptocurrency market was bearish today, with most altcoins trading in the red. However, Phantom (FTM) As of this writing, it is up 4% to trade at $0.511, bucking the bearish sentiment.
FTM was one of the top performers in the market last week, with a seven-day gain of 15%. The rally is being driven by surging demand, with volume up more than 150% at press time. CoinMarketCap.
The growing interest in the Fantom network is also fueling the surge. Dapp radarThe network’s dApp transaction volume nearly tripled from $3.4 million to $9 million in 24 hours.
This volume reached its highest level since late August.
Source: DappRadar
Decentralized finance (DeFi) activity is also growing on the network. DeFiLlamaThe network’s total value locked (TVL) increased by $2 billion to $77 billion.
Fantom tests key resistance levels.
FTM price was forming higher highs and was attempting to break the key resistance level of $0.52 at the time of writing this article.
However, Phantom has been unable to break this resistance level for several weeks, with each failed attempt reversing into a downtrend.
Source: TradingView
Chaikin Money Flow (CMF) showed buyer confidence in the breakout. The indicator turned positive and tilted north, indicating that buying pressure overwhelmed selling pressure.
The uptrend is also supported by the surge in volume as the On Balance Volume (OBV) indicator is rising. Nevertheless, if the smoothing line crosses above OBV, the continuation of the uptrend will be confirmed.
Such a crossover could help FTM break above the $0.52 resistance level and set the stage for a move up to the 1.618 Fibonacci level ($0.63).
On the other hand, if FTM fails to break this resistance line, the uptrend will weaken and the asset may fall to the support level of $0.46.
Looking at the FTM liquidation levels, we can see that a bullish trend will be confirmed when the price approaches $0.61.
According to data from Hyblock Capital, $12 million worth of short positions are expected to be liquidated if FTM moves into the $0.61-$0.63 range.
Source: Hyblock Capital
Read our Fantom (FTM) price prediction for 2024-2025
As the price approaches this level, short sellers may begin to close out their positions to mitigate losses, which could result in more profits.
Also, FTM’s funding ratio is Coinglass At the time of writing, it has turned negative, indicating that short positions are dominant. This suggests that many traders expect the rally to fail and that FTM is headed for a bearish reversal.