news 
Fantom: If FTM flips THIS level into support, $0.85 could be next
Fantom’s recent breakout has ignited a wave of optimism among investors, but the cryptocurrency’s trajectory remains uncertain amid growing resistance and profit-taking concerns.
Following an impressive 6% price surge in the last 24 hours, Fantom (FTM) is currently trading at $0.5425. The token’s remarkable growth has been fueled by rising network activity, a key technical pattern breakout, and increased investor participation. While this rally may be enticing for some investors, the cryptocurrency must overcome significant resistance levels to maintain its upward momentum.
As FTM approaches crucial support at $0.56, the market is divided on what to expect next. On one hand, clearing this hurdle could set the stage for a potentially strong push toward $0.85. On the other hand, failure to hold above $0.56 may signal a retracement down to the $0.40-$0.45 region.
To begin with, it is essential to acknowledge FTM’s impressive growth in network activity. According to recent data, new addresses on the Fantom blockchain have risen by an astonishing 35% over the past week, while active addresses have increased by a modest 10%. This significant growth indicates that users are actively engaging with the network, which is typically a bullish sign.
Furthermore, FTM’s recent price action has also been characterized by a breakout from a descending symmetrical triangle. While this pattern may have initiated a new uptrend, it remains essential to monitor the cryptocurrency’s response around $0.56.
In addition to these fundamental drivers, various technical indicators are also providing conflicting signals. The MVRV Long/Short Difference has dropped sharply, suggesting that traders who bought lower are now securing profits. This shift in market sentiment could lead to profit-taking and put pressure on FTM’s price action.
However, if demand remains robust and investors continue to accumulate the token at current levels, buyers might be able to absorb any potential selling pressure and propel prices higher.
In conclusion, while Fantom’s recent performance is undoubtedly impressive, it is crucial for investors to remain cautious and assess the cryptocurrency’s response around $0.56. Should FTM successfully flip this level into support, a push toward $0.85 could become increasingly likely. Conversely, failure to hold above resistance may trigger a retracement down to previously mentioned levels.
It remains to be seen which path FTM will take in the coming days.
Source: ambcrypto.com
