- Fantom has bounced back from the key $0.65 support zone and could be setting the stage for a bullish rally.
- Metrics support the growing bullish momentum.
Fantom [FTM] indicates strong signs of recovery after testing the support level support zone at $0.65 on the daily charts.
This level has indeed proved its significance, as it sparked the previous rally between mid-November and mid-December.
At the time of writing, the altcoin had gained by over 10% in less than 24 hours.
As the altcoin regains strength, its technical and on-chain metrics have suggested that FTM might be gearing up for another upward surge.
Key support zone at around $0.65 tightens
Fantom’s support zone around $0.65 aligns with Fibonacci retracement levels, specifically the favorable reversal zone between 0.618 and 0.718. Historically, this confluence has acted as a launchpad for FTM bullish moves.
Interestingly, on the weekly chart, Fantom continues to establish a bullish structure with higher highs and higher lows.
This reinforces the narrative that the current pullback may be a healthy consolidation phase before another rally.
Source: TradingView
On-chain metrics lean bullish
AMBCrypto’s analysis of on-chain data from IntoTheBlock further confirms Fantom’s bullish potential. Large transaction and bid-ask volume hold the lion’s share of the bullish signal.
Large transactions on the network have surged by 5%, highlighting growing interest from institutional and whale investors. Additionally, its bid-ask volume balance has jumped by 18.43%, indicating surging buying pressure.
These metrics align with the altcoin’s current bullish momentum, increasing the odds of Fantom breaking through its next resistance level.
If large transactions continue, the increased demand could propel FTM to test higher resistance zones.
Source: IntoTheBlock
What next for Fantom
Both technical and on-chain indicators suggest that the $0.65 support zone could finally give Fantom a reason to start its new rally.
Read Fantom’s [FTM] Price Prediction 2024-25
The continuation of large transactions and sustained buying pressure are crucial for FTM to break its next resistance level.
If the bullish trend continues, then FTM could set new highs and extend its upward trajectory.
