Fantom (FTM) has recently reclaimed its upward momentum, emerging from a prolonged decline and eyeing a significant short-term target of $1.47. This resurgence is driven by retail investors, and multiple indicators suggest that impressive growth could be on the horizon.
Breaking Free from the Downward Trend
FTM has gained attention by breaking out of a descending triangle formation on the 4-hour chart. This pattern often indicates a period of price consolidation, but now signals a shift toward an upward trajectory. Currently, FTM is trading at $0.85. If the upward momentum continues, this cryptocurrency could potentially climb to $1.47, showcasing a remarkable 73.28% potential increase. Although it faces substantial resistance, the stage is set for a rally.
A Surge in Retail Investor Participation
One of the primary catalysts behind FTM’s recent rise is the growing engagement from retail investors. A notable 17.86% increase in Active Addresses highlights this trend, signifying that more traders are participating in the market. Active Addresses represent wallet addresses that have made at least one transaction in a certain timeframe, reflecting heightened trading interest.
Interestingly, the lack of significant whale activity indicates that larger investors have yet to rejoin the market. Recently, whale transactions have diminished, with large trades dropping to around 35.86 million FTM, valued at about $29.22 million. The trend suggests that this rally is primarily driven by smaller traders. If institutional investors or large holders decide to increase their purchases, it could lead to an even stronger price push for FTM.
Technical Indicators Signal a Golden Cross Ahead
The technical outlook for FTM is promising, with indications pointing towards a Golden Cross formation. This occurs when the MACD (Moving Average Convergence Divergence) blue line crosses above the orange signal line, signaling a bullish momentum shift. Golden Crosses are commonly followed by significant price surges, making them vital indicators for traders looking to benefit from rising prices.
Additional technical metrics support this bullish sentiment, including a rising funding rate and an increasing long-to-short ratio.
Positive Market Sentiment Fuels Optimism
Market sentiment surrounding FTM remains optimistic, underscored by compelling indicators. The funding rate for FTM has risen to 0.0330%, showing that buyers are firmly in control. This uptick suggests that more participants are betting on an increase in FTM’s price, which typically bodes well for continued upward movement.
Moreover, the long-to-short ratio has climbed above 1, reaching 1.0317. This ratio indicates that there are more long positions than short ones in the market, reinforcing the bullish outlook and strengthening the rationale for a potential price rally.
Setting Sights on $1.47 and Beyond
Given FTM’s recent breakout from a consolidation phase, coupled with strong technical indicators and increased retail participation, it appears that this cryptocurrency is on track for further growth. The $1.47 target seems achievable, and if the momentum holds, FTM might even exceed this mark in the coming weeks.
The involvement of institutional investors and whale traders will play a pivotal role in propelling FTM to new heights. With the right conditions in place, FTM could experience a notable rally, making it a cryptocurrency to keep a close watch on in the near future.
