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Fantom (FTM) has begun to show renewed market interest along with increased online activity, raising hopes for a potential price recovery.
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Despite the recent price drop of 2.16%, increased blockchain activities and a positive market atmosphere may signal a transformation.
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According to COINOTAG, “the combination of large liquidations and increased user engagement suggests that FTM may experience a recovery.”
Discover how Fantom’s recent surge in activity and uptrends may indicate a possible price recovery for FTM despite current market challenges.
Will FTM be able to break out of its current range?
FTM is currently trading in a tight price range; support The level is $0.7316 and there is significant resistance The level is set at $0.9671. A break above this upper level could push the price upwards to $1.08, which is known among traders as the psychological threshold.
On the other hand, if FTM cannot maintain its momentum and loses support, a fall is possible. It consists of graphics descending triangle the model indicates that a significant price movement could occur in the near future. Therefore, the upcoming trading sessions will be crucial in determining the direction of the asset.
Source: TradingView
Is the network activity giving a bullish signal?
Fantom’s latest data shows an increase in blockchain activity; new addresses increased by 38.46%, active addresses by 23.52%, and zero balance addresses by 63.51% in the last week.
This increase in activity indicates growing interest within the ecosystem and could strengthen FTM’s long-term valuation. However, a continuation of this uptrend is key to sustaining bullish momentum, and network activity stands out as an important indicator for further analysis.
Source: IntoTheBlock
The MVRV ratio indicates potential undervaluation
The most recent market value to fair value (MVRV) ratio is currently 17.39%, indicating declining profits for FTM owners.
Historically, such declines indicate periods of significant price movement due to generally perceived low valuations, which can attract potential buyers. However, constant selling pressure can adversely affect prices; Therefore, careful monitoring of trader sentiment is essential to assess market direction.
Source: Sentiment
Are the technical indicators heralding a reversal?
The relative strength index (RSI) is at 50.37%; This reflects neutral momentum, but is currently prone to a slight upward recovery.
In addition, the intersection of the short-term moving average and the long-term moving average indicates the potential for increased volatility.
This chart shows that traders should be careful; because recent trends indicate that an important turning point is approaching.
Source: TradingView
The liquidations show that traders remain optimistic
The latest liquidation data shows a decrease of $23.06K in short positions and an increase of $98.22K in long positions. This reflects continued bullish expectations among traders.
This significant imbalance shows that many traders are betting that the price of FTM could rise in the near future. However, external factors can disrupt this trend; Therefore, evaluating liquidation data together with other financial indicators will be useful to obtain a more complete perspective.
Source: Coinglass
Read Fantom’s (FTM) 2024-25 Price Forecast
In summary, Fantom’s increased network activity, positive liquidation trends and clear technical signals suggest that there is potential for a price recovery.
However, it is important to constantly monitor the decreasing rate of MVRV and critical resistance levels. If FTM can sustain the growth of the network and exceed key price thresholds, it is likely to see a rally in the coming weeks.
