Fantom (FTM) Price Correction Concludes as Buying Opportunities Arise
Fantom (FTM) has been going through a period of consolidation recently, with no clear trend emerging. However, recent on-chain metrics are indicating a buy signal for FTM, potentially breaking the consolidation phase.
One positive sign is that Fantom’s price is currently trading above $0.63, which suggests that the altcoin may avoid further downward movement. The Moving Average Convergence Divergence (MACD) provides further support for this, with the indicator line (blue) on the verge of crossing over the signal line (red), indicating a bullish crossover and a potential price increase.
Additionally, there is a divergence in the price daily active addresses (DAA) indicator for Fantom. This divergence suggests an ideal accumulation zone, and typically signals a buy opportunity. This means that if investors take advantage of this signal and accumulate FTM, it could lead to a potential recovery.
At the time of writing, Fantom’s price is maintaining its position above the key support level of $0.63. This support level has been tested multiple times this year and has remained unbroken since early March. Similarly, the resistance block of $0.79 and $0.88 has been tested as both support and resistance, making it a challenging barrier to breach.
If FTM does experience a rally in the coming trading sessions, it is likely to face resistance at the lower limit of the resistance block, which is at $0.79. Beyond that, it is uncertain whether it will be able to break through $0.80 or not.
On the other hand, if the support level of $0.63 is broken, Fantom’s price could experience significant downward movement. This would invalidate the bullish thesis and potentially lead to further losses, with the price potentially falling to $0.55 or below.