Fantom [FTM] surges to $0.46, but here’s why the rally could halt

Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.

• The trendline resistance may halt and even reverse latest beneficial properties.
• The $0.4 space has served as vital help all through March.

Fantom [FTM] rallied strongly from a zone of help the bulls established across the $0.4 mark. Prior to now 36 hours, the worth rallied by virtually 18% from the swing low at $0.4096 to the swing excessive at $0.467.

Learn Fantom’s [FTM] Value Prediction 2023-24

In different information, Fantom introduced its intent to change the necessities for validator staking on 25 March. The brand new proposal had vital modifications that will have noticeable penalties within the processes and necessities for validators.

The resistance from the quantity profile may halt the bullish advance

In orange, a trendline resistance was plotted. This captured the short-term downtrend that FTM had been on. On the upper timeframe charts, this was a pullback after the rally from $0.31 to $0.52 earlier this month.

Alongside the trendline resistance, the Seen Vary Quantity Profile confirmed that the Level of Management (pink) additionally sat at $0.46. This was a confluence of resistances that would see the rally shift right into a consolidation section over the subsequent few days.

FTM merchants can count on some decrease timeframe ranging value motion within the coming hours. Thereafter, whether or not a breakout upward or rejection at $0.46 adopted remained to be seen. The OBV has been rising in March and indicated regular demand.

The RSI was on the verge of closing a session above impartial 50, which might be an indication that momentum had shifted in bullish favor.

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Indicators of network-wide accumulation hinted at a bullish breakout

Supply: Santiment

Though rejection at resistance was potential, the on-chain metrics confirmed a continued transfer upward was extra doubtless. The 90-day imply coin age has been on an uptrend since mid-February. It noticed a pointy dip on 13 March, when FTM examined the $0.4 space as resistance. The transfer again above $0.4 emboldened the bulls.

The 30-day MVRV ratio was near zero and indicated that there was room for the development to go greater. Revenue-taking and the added promoting stress weren’t but a priority for merchants, in accordance with this metric.