Fantom [FTM] reaches mid-range resistance, bulls could cede gains soon
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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- The market structure flipped bullish, but a pullback was likely.
- Bitcoin could dictate the direction of altcoins, and caution remained important.
Fantom [FTM] has a bullish bias on the higher timeframes after it recovered over the past ten days. The buyers pushed the prices strongly above the $0.42 mark. The sentiment across the crypto market was positive. Bitcoin [BTC] rapidly approached the make-or-break resistance at $28k.
Read Fantom’s [FTM] Price Prediction 2023-24
A move above $30k could see further enormous gains across the market. It was also possible that this was a short but intensely euphoric Bitcoin rally amidst the depths of a bear market. Whichever it may be, the technicals showed that FTM could see a pullback before another leg upward.
The $0.51 level was on the bulls’ agenda, but it held firm so far
Since February, FTM has traded within a range that extended from $0.42 to $0.6. The mid-range mark was $0.51. In early March, the price fell decisively below the range lows. But over the past two weeks, the sentiment appeared to have shifted across the market.
The price climbed back into the range. In doing so, the market structure was flipped to bullish, and the break of the recent lower high was highlighted in blue. The bulls spent the past four days battling the bears near the psychological $0.5 area. They could not force a daily trading session close above $0.51.
On the lower timeframes, the asset has lost some of the bullish impetus it had just a few days ago. Therefore, in the event of rejection at $0.5, buyers can wait for a move into the bearish breaker at $0.42 to buy.
The RSI was above neutral 50 and showed momentum has changed in favor of the bulls. The OBV has also climbed back above a support level since February. This suggested buying pressure behind Fantom.
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The active users were in decline despite strong market performance
The price volatility ticked upward for the past two weeks. During this time, FTM fell below $0.42 to reach $0.315 before recovering to reach $0.5. Meanwhile, the weighted sentiment behind the token was positive, especially over the past week.
However, even though the price charts showed bullish sentiment, the active addresses count has steadily dropped since late February. The inference was that there was a strong likelihood that the gains were driven solely by speculators and not necessarily backed by increased usage across the network.