- At press time, Fantom’s momentum was in overbought territory and could see a downtrend.
- The strong demand during the $1 breakout was a long-term bullish signal.
The bulls in Fantom (FTM) have regained support around the $1.22 level and have the power to push the price higher. We expect FTM to test the $1.44-$1.5 resistance area soon.
With Bitcoin (BTC) recently surpassing $100,000 in its initial launch, further gains can be expected across altcoin markets in the coming months.
Is it time to withdraw FTM?
Source: FTM/USDT on TradingView
A breakout of the $1 level on the daily chart gave a huge boost to bullish beliefs. On November 28, the same level was tested again as support. During this breakout, volume expanded to reflect buying pressure from FTM.
The A/D indicator showed an upward trend due to increased trading volume. This indicator reflected increased demand as Phantom prices continue to rise. Over the past five days, the $1.22 level has also reversed into support.
This is the highest point reached in March before the altcoin fell into a six-month decline. The next resistance levels were $1.44, $1.68, and $1.79.
The Stochastic RSI was in overbought territory, as was the RSI on the daily chart. This does not mean an immediate decline, but can be interpreted as a sign that the market may be overextended. In fact, it rose 105% in just two weeks.
The 23.6% extension level resistance at $1.44 may temporarily reject the bullish trend.
Speculative interest continued to grow
Source: Coin Analysis
FTM’s open interest also rose in line with the price. This indicates a strong bullish sentiment in the futures market.
Read Fantom (FTM) Price Prediction for 2024-25
Funding rates have been increasing over the past week, which shows a wider gap between spot and futures prices. This divergence has been triggered by an increase in speculative participants and is a sign of optimistic confidence in the near term.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.