Fantom accelerates right into a sensational rally continuation after cracking key resistance at $0.50. However will it proceed, and the way excessive can FTM go?
After enduring a difficult interval of crypto winter value consolidation all through 2022, which noticed Fantom trapped in a spread between $0.16 and $0.44 for 8 months, January introduced a vibrant begin.
Regardless of analyst predictions, the Fantom bulls continued to drive the rally increased and better.
Bollinger bands (volatility measure) tightening into Jan 2 set the stage for a gradual rally.
After which value ranges smashed throughout the ground, like a bull in a china store as Fantom surged by way of previous areas of help and resistance.
Emboldened by macro sentiment from Bitcoin and the US financial system. Bulls have up to now sustained a 200% acquire all through January.
Bulls have maintained their grip regardless of struggles at $0.35 and $0.40. Lastly, cracking key resistance at $0.50 on the finish of January.
February now marks a decisive breakout characterised by large bullish candles. FTM sits in pure value exploration mode, at present buying and selling at $0.60 (+4.92% 24hr).
How excessive can FTM go?
It appears there may be slight hesitation on the psychological degree of $0.60. It is a degree with little historic resistance, and is more likely to break as value motion clings to the higher pattern line.
With such a steep and powerful bullish channel, it’s predictable that the value will transfer to check the subsequent degree.
There’s a probabilistic space of resistance to combat by way of at $0.65 (a acquire of 11% from right here). A rally by way of this degree is more likely to see a neighborhood prime at $0.75 (25% from right here).
Taking a look at our indicators illuminates extra.
The RSI illustrates a mighty rally. Bulls moved the value in 3 essential pushes which have every come near overheating this sign.
However confidence within the rally has remained excessive. Regardless of overbought signaling, the RSI has cooled off throughout every flip of help.
The RSI is at present sat at 71. This itself is an overbought sign a bearish signal. However when in comparison with the heights the RSI has hit throughout every main push of this rally (80+) – shopping for stress stays.
Whereas bearish, this sign may trace at a neighborhood retrace. Worth may dip low to check the rally help in opposition to help ranges and decrease pattern traces. FTM hasn’t examined help for over 24 hours.
Glancing on the MACD, there’s a robust bullish sign at 0.0057 – highlighting the steepness and momentum of this rally.
Why is Fantom rallying?
This rally is a hit story as cryptocurrency markets rebounded all through January. Pushed by improved macro sentiment from the US Federal Reserve and Bitcoin.
However Fantom itself has undergone fairly a transformative 2023 already.
Andre Cronje has introduced that Fantom will improve the struggling ecosystem native stablecoin.
Bullish sentiment round plans to launch fUSD V2 little question play a job. The upgraded stablecoin will proceed to be mintable utilizing FTM, opening doorways to a rising vary of DeFi choices.
Model 2 of fUSD may also function auto-liquidations of positions the place fUSD exceeds the FTM backing it. For instance, if a dealer now not has enough funds to take care of a leveraged place.
This rally additionally comes amid large strikes within the Fantom ecosystem.
TVL has increased all through January to $567m locked (+36%).
And market cap has grown 135% courtesy of this phenomenal rally. Fantom’s market cap now sits again above a billion at $1.2bn.
Is Now A Good Time to Purchase Fantom (FTM)?
Whereas FTM could not rally massively within the close to future, there different high-potential crypto tasks which are price investing in alongside Fantom. Accordingly, we have reviewed the highest 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Business Speak workforce.
The listing is up to date weekly with new altcoins and ICO tasks.
Disclaimer: The Business Speak part options insights by crypto business gamers and isn’t a part of the editorial content material of cryptonews.com.