- FTM bulls breached the $0.47 resistance, indicating a move in the $1 direction.
- Exchange outflow outpaced inflow, suggesting a upcoming rally for the token.
Fantom’s [FTM] 23.83% hike in the last seven days ensured that it was able to break the $0.47 resistance. At press time, FTM’s price was $0.50. However, that may not be the end of FTM’s short-term.
According to crypto analyst, Ali Martinez, the $0.47 resistance has now become a support zone for the cryptocurrency.
Martinez, in his post, also mentioned that this increase offers FTM a clear path to $0.66 while admitting that the price could go even higher.
#Fantom has triumphantly surpassed a key resistance at $0.47, where 1,430 addresses accumulated over 653 million $FTM.
With this resistance now acting as support and no major supply walls in sight, the path looks clear for #FTM to march toward $0.66 or even higher. pic.twitter.com/GZqeFLznHI
— Ali (@ali_charts) December 23, 2023
$0.66 may not be the last stop
A few days ago, AMBCrypto mentioned how FTM needed to break the supply wall at $0.47 if it was to experience a rally. Therefore, the recent increase means that the aforementioned condition was a valid point.
From the technical perspective, FTM could head close to $1 if the Accumulation/Distribution (A/D) continues to display the same trend.
At press time, the A/D had increased to 4.09 million, indicating a surge in FTM buy orders. The H4 FTM/USD chart also showed that structure was solidly in the control of bulls.
In the previous article mentioned above, AMBCrypo highlighted how there was strong support at $0.39.
Another look at the chart this time confirmed Martinez’s conclusion of another support at $0.47. With increasing volatility shown by the Bollinger Bands (BB), intense buying pressure might lead FTM beyond $1.
But first, the short-term target remains $0.66.
Source: TradingView
However, the Moving Average Convergence Divergence (MACD) showed that the bullish momentum has slowed down a bit. Thus, there is a chance for FTM to drop $0.50 before resuming its upward run. So, traders should take note.
Due to this movement, the Weighted Sentiment around Fantom has been rising.
Doubling down on the FTM rise
Weighted Sentiment tracks the unique social volume around a project. If the metric is positive, it implies that discussions and comments around the project are positive on average.
On the other hand, a negative Weighted Sentiment suggests that market participants are bearish on the price action.
So, FTM’s Weighted Sentiment at 3.13 meant that the traders were bullish on the price at press time. It was also not shocking that the Exchange Outflow outpaced the Exchange Inflow.
According to AMBCrypto’s assessment of Santiment’s data, FTM’s Exchange Inflow was 19.20, while the Exchange Outflow was 367,000.
Source: Santiment
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This disparity implied that more players were willing to hold FTM than those planning to sell the tokens.
Going forward, it is unlikely for FTM to nosedive or experience any major selling pressure. So, traders may find it attractive to find entries around $0.50 before the token begins its explosive run.