Fantom (FTM) has been experiencing a period of consolidation, with no strong directional trend in sight. However, there are some positive indicators that suggest FTM may break out of this consolidation phase.
One such indicator is the fact that Fantom’s price is currently trading above $0.63, supported by the Moving Average Convergence Divergence (MACD). The MACD is a technical analysis tool that measures the relationship between a token’s price and its moving averages, providing insights into momentum and potential buying or selling signals. When the indicator line crosses over the signal line, it confirms a bullish transition. As these lines converge, it becomes more likely that Fantom’s price will increase.
Another positive sign for Fantom is the daily active addresses (DAA) indicator, which shows a difference in price. This can be interpreted as a buying signal, suggesting an ideal accumulation zone. The DAA evaluates the relationship between a token’s price and the number of active addresses transacting on the network, highlighting potential discrepancies between market valuation and network usage trends.
On the support side, Fantom’s price has remained above the $0.63 support line, which has been tested multiple times this year. This support line has proven to be strong since the beginning of March, providing a solid foundation for FTM.
However, there are also resistance levels that FTM needs to overcome. The resistance block at $0.79 and $0.88 has been tested as both support and resistance and has proven to be difficult to breach. Even if FTM manages to rise, it is expected to face resistance at the lower boundary of the resistance block at $0.79. Breaking through $0.80 remains uncertain. On the downside, if the $0.63 support is broken, FTM could experience a significant drop, potentially falling below $0.55.
It is important to note that investing in cryptocurrencies carries high volatility and risk. Therefore, investors should conduct their own research and be aware of the potential risks involved.