- Fantom’s momentum was in overbought territory, at press time, and could see a pullback
- Strong demand during the $1 breakout was a long-term bullish sign
Fantom’s [FTM] bulls managed to reclaim the $1.22-level as support and possessed the strength to drive the price even higher. It can be expected that FTM would test the $1.44-$1.5 resistance zone soon.
With Bitcoin [BTC] early in its run and recently breaking past $100k, further gains can be anticipated across the altcoin market in the coming months.
Time for an FTM pullback?
Source: FTM/USDT on TradingView
On the daily chart, the break of the $1-level was a huge boost to bullish belief. The same level was retested as support on 28 November. During this breakout, the trading volume expanded to reflect the buying pressure behind FTM.
The A/D indicator got a boost from the rising trading volume. The indicator reflected heightened demand as the price of Fantom continued to rise. Over the past five days, the $1.22 level has been flipped to support as well.
This was the high from March before the altcoin sank into a six-month downtrend. The next resistance levels were at $1.44, $1.68, and $1.79.
The Stochastic RSI was in overbought territory, as was the RSI on the daily chart. This did not suggest an immediate pullback, but can be interpreted as a sign that the market could be overextended. In fact, it has rallied by 105% in just over two weeks.
The 23.6% extension level resistance at $1.44 might rebuff the bulls temporarily.
Speculative interest continued to grow
Source: Coinalyze
The Open Interest of FTM moved higher too, arm in arm with the price. This indicated strong bullish sentiment in the Futures market.
Read Fantom’s [FTM] Price Prediction 2024-25
The funding rate has been creeping higher over the past week, showing greater disparity between Spot and Futures prices. This divergence has been spurred by an uptick in speculative participants, and is a sign of bullish conviction in the short-term.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
