Fantom (FTM), the token of the scalable blockchain for decentralized applications, faces challenges. The price, which analysts once predicted would trade at much higher levels, is down 13.04% in the last 30 days.
However, observation on-chain indicates that the end is not near for FTM. Instead, the cryptocurrency could encounter relief that could take it to a significant landmark.
Fantom Bulls Gain Ground Over Bears
FTM’s price at press time is $0.50. However, the Bulls And Bears indicator shows that the value may not continue to trade around this region.
This is because there are more bulls than bears. Put simply, bulls are market participants involved in buying 1% of the total trading volume. Bears, on the other hand, are those involved in selling the same ratio of a cryptocurrency.
When there are more bears than bulls, there is a high chance that the price will decrease. But in Fantom’s situation, there are four more bulls than bears.
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However, this prediction may only come to pass if bulls continue to outpace bears. The Global In/Out of Money (GIOM) is another indicator reinforcing the forecast.
The GIOM classifies addresses according to those in profits, in loss, and at the breakeven point. It also spots prices where these addresses bought the cryptocurrency. If there is a larger number of addresses at a lower value than the current price, it is a support point.
However, if a large number of addresses are out of the money, it could be a resistance point. From the chart below, 11,500 addresses bought almost 218 million FTM tokens, which is around $0.32.
On the other side of the divide, 2,920 addresses accumulated 39.44 million tokens and an average price of $0.52. Should these holders decide to sell when FTM reaches $0.52, the impact on the price may be minimal.
However, with strong support at $0.32, FTM could surpass $0.66 and possibly head toward $0.99, which is a crucial resistance area.
FTM Price Prediction: Potential Upswing Despite Challenges
At press time, FTM trades above the 23.6% Fibonacci level, which is the bear market support floor. Trading above this level indicates that the token has a good chance of moving upwards.
Despite the bullish potential, the Awesome Oscillator (AO) remains negative. The AO gauges whether bullish or bearish forces are the ones driving the market. By doing this, it gives an idea of the market momentum.
As seen below, the negative reading of the AO is supposed to indicate an increasing downward momentum. However, the green histogram bars suggest that bulls are slowly taking control back from bears.
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If sustained, Fantom’s price could approach $0.56 and possibly rise to $0.67, where the price of 61.8% Fibonacci retracement lies.
However, the bullish thesis may not become a reality if bears regain control from bulls and momentum trends downwards. Instead, FTM may drop to $0.49.
The post Fantom (FTM) Bulls Prepare to Take Price Toward $1 appeared first on BeInCrypto.
