Fantom accelerates into a sensational rally continuation after cracking key resistance at $0.50. But will it continue and how high can FTM go?
After a difficult period of crypto winter price consolidation throughout 2022. A chapter which has seen Fantom (FTM) stuck in ranging action between $0.16 and $0.44 for 8 months.
January was bright, as Fantom bulls continued to carry the rally higher and higher. In a move defying analysts’ expectations.
Bollinger bands (volatility measure) tightening into Jan 2 set the stage for a steady rally.
And then price levels smashed across the floor, like a bull in a china shop. As Fantom surged through past areas of support and resistance.
Emboldened by macro sentiment from Bitcoin and the US economy. Bulls have so far sustained a 200% gain throughout January.
Despite struggles at $0.35 and $0.40 bulls have maintained their grip. Finally cracking key resistance at $0.50 at the end of January.
February now marks a decisive breakout characterised by big bullish candles. FTM sits in pure price exploration mode, currently trading at: $0.60 (+4.92% 24hr).
Source: TradingView
How high can FTM go?
It seems there is slight hesitation at the psychological level of $0.60. This is a level with little historical resistance, and is likely to break as price action clings to the upper trend line.
With such a steep and strong bullish channel, it is predictable that price will move to test the next level.
There is a probabilistic area of resistance to fight through at $0.65 (a gain of 11% from here). A rally through this level is likely to see a local top at $0.75 (25% from here).
Looking at our indicators illuminates more.
The RSI illustrates a mighty rally. Bulls moved price in 3 main pushes that have each come close to overheating this signal.
But confidence in the rally has remained high. Despite overbought signalling, the RSI has cooled off during each flip of support.
The RSI is currently sat at 71. This itself is an overbought signal a bearish sign. But when compared to the heights the RSI has hit across each major push of this rally (80+) – buying pressure remains.
While bearish this signal could hint at a local retrace. Price could dip low to test the rally support against support levels and lower trend lines. FTM hasn’t tested support for over 24 hours.
Glancing at the MACD there is a strong bullish signal at 0.0057 – highlighting the steepness and momentum of this rally.
Why is Fantom rallying?
This rally is a success story as cryptocurrency markets rebounded throughout January. Driven by improved macro sentiment from the US Federal Reserve and Bitcoin.
But Fantom itself has undergone quite a transformative 2023 already.
Andre Cronje has announced that Fantom will upgrade the struggling ecosystem native stablecoin.
Bullish sentiment around plans to launch fUSD V2 no doubt play a role. The upgraded stablecoin will continue to be mintable using FTM, opening doors to a growing range of DeFi offerings.
Version 2 of fUSD will also feature auto-liquidations of positions where fUSD exceeds the FTM backing it. For example, if a trader no longer has sufficient funds to maintain a leveraged position.
This rally also comes amid big moves in the Fantom ecosystem.
TVL has increased throughout January to $567m locked (+36%).
And market cap has grown 135% courtesy of this phenomenal rally. Fantom’s market cap now sits back above a billion at $1.2bn.
Is Now A Good Time to Buy Fantom (FTM)?
While FTM may not rally massively in the near future, there other high-potential crypto projects that are worth investing in alongside Fantom. Accordingly, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not part of the editorial content of cryptonews.com.
This article is informative and is not investment advice, do your own research when investing in highly volatile cryptocurrency projects and ensure your own compliance with domestic financial regulations.
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