Fantom (FTM) is showing promising signs of a potential bullish reversal, with its native token FTM forming a bullish price action pattern on the daily time frame. Despite a recent price drop of over 56%, it seems that the downtrend is now reversing.
Technical analysis from CoinPedia indicates that Fantom (FTM) has found crucial horizontal support at the $0.60 level, which has been a significant bounce point for the token since September 2024. This time, FTM has demonstrated a bullish divergence on its daily chart, signaling a potential buying opportunity for traders and investors.
Bullish divergence occurs when an asset’s price is making lower lows while a technical indicator like the Relative Strength Index (RSI) is making higher lows. This divergence often serves as a signal for a potential price bounce or reversal, making FTM an attractive prospect for those looking to capitalize on the market momentum.
Based on recent price action, if FTM can maintain support at the $0.60 level, there is a high likelihood that it could surge by 50% to reach the $1.05 mark in the near future. Currently trading near $0.70, FTM has already shown signs of recovery with a price rally of over 9.5% in the past 24 hours. This uptrend has also been accompanied by a 26% increase in trading volume, indicating growing interest from traders and investors.
On-chain analytics firm Coinglass reports that 73.7% of traders are currently long on FTM, with only 26.3% holding short positions. This strong bullish sentiment among traders, combined with the technical analysis indicating a potential price reversal, suggests that FTM could be on track to meet its projected target.
In conclusion, the recent price action and on-chain metrics point towards a bullish outlook for FTM. With strong support levels, bullish divergence, and high trader interest, Fantom’s native token FTM could be poised for significant upside momentum in the coming days.