Fantom (FTM) has been experiencing a period of consolidation, with no clear directional trend in sight. However, there are some positive signs that could help FTM break free from this consolidation phase.
One positive sign is that Fantom’s price is currently trading above $0.63, which is supported by the Moving Average Convergence Divergence (MACD) indicator. The MACD 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 is possible that FTM’s price could see an increase.
Furthermore, Fantom shows a difference in the daily active addresses (DAA) indicator, which can be seen as a buying signal. This indicator evaluates the relationship between a token’s price and the number of active addresses transacting on the network, revealing potential discrepancies between market valuation and network usage trends.
On the support side, FTM has maintained its presence above the $0.63 support line, which has been tested multiple times this year and remains intact since March. This support line provides a level of stability for FTM’s price.
However, there are also resistance levels to consider. The resistance block at $0.79 and $0.88 has proven to be a challenge to breach in the past. Even if FTM manages to see a rise, it is likely to be halted at the lower boundary of this resistance block at $0.79. It is uncertain whether FTM will be able to break through the $0.80 mark. On the other hand, if the $0.63 support line is broken, FTM’s price could see a significant drop, with a fall below $0.55 invalidating the bullish thesis and potentially leading to further losses.
Please note that the information provided in this article is not investment advice. It is important for investors to be aware of the high volatility and risks associated with cryptocurrencies and to conduct their own research.
