Fantom (FTM) has been experiencing a noticeable shift towards accumulation by mid-term and long-term holders, indicating increased confidence in its future prospects. Despite being in the overbought zone, the FTM price is buoyed by positive market sentiment, as evidenced by the high investor interest indicated by its 7-day RSI. The bullish trend suggested by the Exponential Moving Average (EMA) lines further supports the potential for FTM to reach a new 2-year high in the near future.
While the RSI currently stands at 77, slightly lower than the previous week’s 81, it’s important to note that in the past, FTM price has continued to grow for weeks even when the RSI suggested overbought conditions. This demonstrates that while the RSI can indicate potential reversals, it does not guarantee them, and market dynamics can sustain price growth beyond traditional technical expectations.
During the analyzed period between February 24 and March 23, there was a significant increase in FTM held by traders, coinciding with heightened price volatility. However, after March 8, the growth in FTM holdings among traders slowed down, and on March 22 and 23, there was a significant decline in the supply of FTM in the hands of traders. This decrease was likely due to investors capitalizing on favorable market conditions and securing profits.
The observed decrease in FTM supply among traders suggests a potential transition from short-term, profit-driven traders to investors with a longer-term perspective on the FTM ecosystem. This can indicate growing confidence in the project’s future potential and a shift towards a more patient holding strategy.
Looking at the 4-hour chart, the Exponential Moving Averages (EMAs) demonstrate a bullish picture, with shorter-term EMAs positioned above longer-term ones. This indicates recent price action being driven by aggressive buyers and further supports the optimistic outlook. The current price is comfortably above the key 20 EMA, and support has consistently been found near the 50 EMA, reinforcing the notion that bulls are in control.
If the momentum continues and the price breaks decisively through the $1.22 resistance level, a significant price advance towards $1.50, a level unseen since late March 2022, becomes a realistic possibility. However, if a downtrend occurs, FTM could drop to $0.70 or even below $0.60 in the near future.
Overall, considering the positive market sentiment, the shifting FTM supply dynamics, and the bullish technical indicators, there is a possibility for FTM to hit a new 2-year high in the coming months.