Analyst assesses that Fantom (FTM) is 'in the mood' for a big rally
Analyst Aaryamann Shrivastava pointed to a possible rise in the price of the Fantom cryptocurrency (FTM), based on a combination of technical factors and on-chain metrics.
According to Shrivastava, Fantom is approaching a crucial resistance. Therefore, a closing above this mark could trigger a new phase of appreciation.
“Fantom’s price broke its 200-day Exponential Moving Average (EMA) at $0.558 on September 17, triggering a rally of more than 24% over the next four days,” the analyst explained.
According to him, the cryptocurrency is now close to the US$0.746 level, an important resistance point. He points out that if Fantom manages to close above this level, Fantom could rise another 15%, reaching the high of US$0.855, registered on June 5th.
Fantom: technical indicators favor the rise
Shrivastava highlighted that in addition to the breakout of the 200-day EMA, other technical indicators reinforce the bullish outlook for Fantom. The MACD (Moving Average Convergence Divergence) indicator, for example, is close to making a bullish crossover. This could signal a buying opportunity.
“If the blue MACD line crosses above the yellow signal line, it will indicate that the bulls are in control, increasing the upward momentum in the Fantom price,” analyzed the expert.
Another indicator cited by Shrivastava is the Relative Strength Index (RSI), which currently stands at 61, above the neutral level of 50, but still far from indicating an overbought condition.
According to him, this suggests that there is still room for further appreciation of Fantom before the market shows signs of exhaustion.
High expectations for FTM
In addition to technical indicators, Shrivastava noted that Fantom's on-chain metrics also support bullish expectations. The Exchange Flow Balance, for example, a metric that measures the net flow of FTM tokens entering and leaving exchanges, has registered a sharp drop in recent days.
“Between Sunday and Monday, the Exchange Flow Balance fell from -673,150 to -3.66 million tokens. This drop indicates that investors are withdrawing their tokens from exchanges and storing them in cold wallets, which reduces selling pressure and increases confidence in the asset”, he commented.
With a 3.32% decrease in FTM supply on exchanges, Shrivastava highlighted that this action by investors could be a positive indicator for Fantom.
Another relevant factor highlighted by the analyst was the collection of fees on the Fantom network. According to data from Token Terminal, Fantom collected $100,829 in fees on Sunday, the most since November 2023.
Despite the optimism, the analyst warned of the risk of a correction if Fantom's price closes below US$0.642, which would invalidate the bullish scenario. In this case, the cryptocurrency could face a drop of up to 13%, retesting the $0.558 support.