Fantom, a scalable blockchain platform for DeFi, surged 8% in value on the morning of August 16, making it the best performer in the cryptocurrency market.
At the time of writing, Fantom (FTM) is still up 8%, trading at $0.393 per coin, according to crypto.news data. The crypto asset’s daily trading volume has increased by 84%, hovering around $274 million, while its market cap stands at $1.1 billion, making it the 70th largest cryptocurrency.
The token’s price has surged 42% since falling to $0.276 on August 5, when cryptocurrency and stock markets crashed, liquidating over $1 billion. Despite recovering to levels last seen on March 21, FTM is still down 88% from its all-time high of $3.46 hit in October 2021.
The current price of Fantom stock is slightly above the middle band of the Bollinger Band at $0.3691 and well below the upper band at $0.4581. The lower band is at $0.2801.
This suggests that FTM is trading within the typical range of the Bollinger Bands, specifically the upper half of this range. The fact that the price is above the middle band but not yet approaching the upper band could indicate that the market sentiment is somewhat bullish. However, the token has yet to show the strength needed to challenge the upper resistance level at $0.4581.
FTM Index Holds Neutral Indicators Awaiting Market Catalysts
The fact that the FTM remains within the Bollinger Bands indicates that the price action is within the expected volatility levels and has not yet reached the overbought or oversold point. The proximity to the middle band indicates a phase of consolidation or a moderate uptrend but not a strong breakout.
Additionally, the RSI is currently at 49.61. This level is close to the neutral 50 mark, indicating neither overbought nor oversold conditions. This supports the idea that FTM is in a consolidation period, with the market undecided on its next major move.
While FTM is showing moderate bullish behavior by trading above the middle Bollinger band, the lack of a strong push towards the upper band and a neutral RSI indicate that the token is in a consolidation mode.
The market may be waiting for a catalyst to determine the next direction, whether it is bullish momentum to test the upper band or a potential correction towards the middle or lower bands. A broader analysis of FTM price action on the daily chart also reveals a falling wedge pattern. The price has seen a significant decline, falling 78.59% from the $1.22 high to the $0.26 low since March 2024.
More optimistically, FTM’s price action is signaling the beginning of a bullish phase, as the token has started to rally from the support trend line. Over the past 11 days, FTM has seen a 33.51% increase, pushing it above the 20-day EMA. However, a recent surge in selling pressure around the $0.40 mark has led to a sharp price rejection in the latest daily candle, raising concerns about a potential bearish reversal.