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Fantom network grows: A sign of FTM’s incoming price rally?
The Fantom (FTM) community has been eagerly anticipating a reversal in the cryptocurrency’s downtrend. Recent data suggests that the network activity on the Fantom blockchain is on the rise, sparking speculation about an impending price recovery.
At press time, FTM was trading at $0.7934 with a 2.16% decline in the past 24 hours. Despite this short-term decline, the asset’s price still remains locked within its recent range of $0.7316 to $0.9671. This has led to discussions about the potential for a breakout above these levels.
One factor that could contribute to such a rally is the growing network activity on the Fantom blockchain. In the past week, new addresses surged by 38.46%, active addresses increased by 23.52%, and zero balance addresses rose by 63.51%. These numbers reflect an increase in interest and participation within the ecosystem, which could have long-term implications for the asset’s value.
Another crucial aspect to consider is the MVRV ratio, which has dropped to a level of 17.39%. Historically, such declines have been followed by significant price movements as they often signal undervaluation. This phenomenon could attract new buyers seeking discounted entry points.
Meanwhile, traders are witnessing mixed signals from various technical indicators. The Relative Strength Index (RSI) is currently at 50.37, indicating neutral momentum with a slight inclination towards bullish recovery. Moreover, the moving average cross suggests potential volatility as the short-term average approaches the long-term average. This combination of signals could indicate that a turning point for FTM’s price may be on the horizon.
A closer examination of liquidation data further highlights the positivity surrounding this narrative. According to recent trends, shorts have been liquidated to the tune of $23.06K, while longs amount to $98.22K. This imbalance suggests that many traders are positioning themselves for an upward price movement, which could contribute to a rally if FTM can sustain its current network growth.
In conclusion, the concurrent rise in network activity and bullish sentiment among traders raises the prospect of an incoming price recovery for FTM. As such, it may be worthwhile for investors to closely monitor the asset’s performance over the coming weeks to gauge whether these trends continue or reverse.
Source: AMBCrypto
Source: ambcrypto.com
