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 a troublesome interval of crypto winter worth consolidation all through 2022. A chapter which has seen Fantom (FTM) caught in ranging motion between $0.16 and $0.44 for 8 months.
January was vibrant, as Fantom bulls continued to hold the rally increased and better. In a transfer defying analysts’ expectations.
Bollinger bands (volatility measure) tightening into Jan 2 set the stage for a gradual rally.
After which worth ranges smashed throughout the ground, like a bull in a china store. As Fantom surged by previous areas of help and resistance.
Emboldened by macro sentiment from Bitcoin and the US financial system. Bulls have thus far sustained a 200% achieve all through January.
Regardless of struggles at $0.35 and $0.40 bulls have maintained their grip. Lastly cracking key resistance at $0.50 on the finish of January.
February now marks a decisive breakout characterised by huge bullish candles. FTM sits in pure worth exploration mode, at present buying and selling at: $0.60 (+4.92% 24hr).
Supply: TradingView
How excessive can FTM go?
It appears there’s slight hesitation on the psychological degree of $0.60. It is a degree with little historic resistance, and is more likely to break as worth motion clings to the higher development line.
With such a steep and powerful bullish channel, it’s predictable that worth will transfer to check the subsequent degree.
There’s a probabilistic space of resistance to battle by at $0.65 (a achieve of 11% from right here). A rally by this degree is more likely to see a neighborhood prime at $0.75 (25% from right here).
our indicators illuminates extra.
The RSI illustrates a mighty rally. Bulls moved worth in 3 major pushes which have every come near overheating this sign.
However confidence within the rally has remained excessive. Regardless of overbought signalling, 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 strain stays.
Whereas bearish this sign may trace at a neighborhood retrace. Value may dip low to check the rally help towards help ranges and decrease development strains. 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 successful 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 doubt 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 not has adequate funds to keep up a leveraged place.
This rally additionally comes amid huge 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 might be value investing in alongside Fantom. Accordingly, we have reviewed the highest 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Trade Discuss workforce.
The record is up to date weekly with new altcoins and ICO tasks.
Disclaimer: The Trade Discuss part options insights by crypto trade gamers and isn’t a part of the editorial content material of cryptonews.com.
This text is informative and isn’t funding recommendation, do your personal analysis when investing in extremely risky cryptocurrency tasks and guarantee your personal compliance with home monetary rules.