Fantom (FTM) has caught the eye of crypto enthusiasts after a 5.01% surge in the past 24 hours, trading at $1.28 at the time of writing. This bullish momentum aligns with a prominent cup-and-handle pattern forming on the weekly chart, a technical formation often associated with significant price rallies.
The Cup-and-Handle Pattern: A Bullish Signal The cup-and-handle pattern, characterized by a rounded bottom (the cup) followed by a consolidation phase (the handle), is a bullish indicator. FTM’s recent price action has perfectly mirrored this pattern, suggesting that a strong upward trend may be imminent.
The $1.40 Hurdle: A Key Resistance Level The immediate challenge for FTM lies at the $1.40 resistance level. A successful breakout above this level could trigger a substantial price increase. The formation of higher lows and the growing buying volume further strengthen the case for a bullish breakout.
#Fantom $FTM is one of the most bullish macro charts across the marketš
— Alex Clay (@cryptclay) December 14, 2024
Massive Broadening Wedge formationš„ | Still in the bullish leg 3š
We might see some consolidation between 0.236 fib & 0.382 fib but breakout is coming!#FTM is double digits potential, so do not missā¦ pic.twitter.com/yQLuIMA6af
Technical Indicators Point to Continued Upward Momentum Several technical indicators support the bullish outlook for FTM:
- MACD: The Moving Average Convergence Divergence (MACD) has crossed into bullish territory, signaling a potential upward trend.
- ADX: The Average Directional Index (ADX) is at 26.39, indicating a strengthening trend.
- On-Chain Metrics: Net network growth and large transaction volume have increased, reflecting growing user engagement and institutional interest.
Open Interest Surges, Signaling Increased Trader Confidence The surge in Open Interest, a measure of the total number of outstanding derivative contracts, by 4.75% to $377.65M is a significant bullish indicator. This increase suggests that traders are becoming more confident in FTM’s potential and are actively placing bets on its future price movement.
Also Read: Fantom (FTM) Surges 7.49% as Sonic Labs Achieves 10,000 TPS Milestone with Genesis Block Launch
With strong technical indicators, solid on-chain metrics, and increasing trader confidence, Fantom (FTM) appears well-positioned to break through the $1.40 resistance and potentially experience a significant price surge. However, as with any investment, it’s crucial to conduct thorough research and consider consulting with a financial advisor before making any investment decisions.
Disclaimer:Ā The information in this article is for general purposes only and does not constitute financial advice. The authorās views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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