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Fantom (FTM) has been underperforming in the past few months, shedding virtually all the profits gained at the beginning of the year. However, the bulls seem to be back in control, as the cryptocurrency price indicates increased buying pressure.
Related Reading: Bitcoin Price Breaks Above $30,000: Is The Bull Run Back On?
Fantom Price Jumps By 15% In 24 Hours – Price Overview
Since April 18, FTM has displayed downward price action, contributing to the coin’s negative market sentiment. However, the token’s price is bouncing and showing signs of a recovery by gaining more than 15% in the last 24 hours.
Meanwhile, Fantom has had a generally positive week, showing green on the weekly chart with a 10% price increase. This bullish momentum has slowed the coin’s descent to the yearly low of $0.1997.
However, it is worth mentioning that the cryptocurrency is still a long way from its 2023 peak at $0.6345. Fantom reached this price point as far back as February 4 and has declined since, losing more than 53% of its value.
According to data from CoinGecko, FTM currently trades at $0.2955, with a 24-hour trading volume of over $121 million. The trading volume experienced a 90.5% increase in the last day, indicating a recent surge in market activity.
FTM Price Approaches Significant Resistance Level
During its descent, FTM broke the $0.34 support level, falling to a low of $0.21 on June 10. Interestingly, the FTM price formed an evening star candlestick on the daily chart, indicating a bullish reversal. And the price has been on an upswing since then.
In addition to the evening star pattern, technical indicators signal a bullish reversal.
For instance, the daily Relative Strength Index (RSI) shows a bullish momentum forming, having moved out of the oversold zone. However, it is yet to confirm the trend reversal, with its line barely crossing above 50.
An RSI reading above 50 often indicates that a bullish run might be on the horizon, while the bears have the advantage when the RSI reading is below 50.
Meanwhile, the daily Moving Average Convergence Divergence (MACD) line recently crossed above the signal line, another bullish indicator.
FTMUSD trading at $0.302 | Source: FTMUSD chart from TradingView
Fantom looks set to target the $0.34 price zone, which is now expected to operate as resistance. Should the FTM price gather enough momentum and break this resistance level, it will likely hit the $0.54 level and perhaps reach a new 2023 peak.
On the flip side, if the resistance level holds strong, the FTM bearish trend may continue. The token’s price may fall to a new yearly low beneath $0.1997 in this case.
It is worth noting that this analysis is not investment advice. Traders are advised to do their due diligence before risking their funds.
