- A noticeable increase in active wallet addresses of FTM and a surge in balances reflects heightened interest in the token.
- Recently, the token broke above the neckline of an inverse head-and-shoulders pattern.
Over the past month, Fantom [FTM] has continued its rally, delivering significant gains and steadily pushing its price higher. In the last 24 hours, the asset recorded a 2.73% gain, driven by increased buying activity and growing trader confidence.
Trading volume saw a modest 6.51% increase, reaching $1.30 billion in the past day. This minor uptick suggests that while sentiment is optimistic, traders are proceeding cautiously, wary of potential short-term challenges.
Active buyers as market interest scales
At press time, the number of daily active addresses (DAA)—a key metric for gauging market participation—has significantly increased. This metric tracks the activity of participants trading an asset, highlighting growing engagement.
The recent surge in active addresses, combined with a price uptick, suggests a bullish market sentiment. Over the past seven days, DAA has risen by an impressive 28.25%, signaling heightened interest in FTM.
This growing interest is further validated by the Active Address Ratio, which measures the proportion of active addresses compared to those holding balances. This ratio has increased, with an average reading of 0.60%, indicating a notable rise in the number of addresses now holding FTM.
Source: IntoTheBlock
Such trends point to a growing long-term commitment from market participants. The data points out that many of these holders may be positioning themselves to retain FTM as part of a longer-term investment strategy.
Resistance looms over FTM’s bullish momentum
Although FTM remains bullish with strong on-chain indicators, it now faces a significant hurdle in the form of a key resistance level.
After successfully breaking above the neckline of a bullish inverse head-and-shoulders pattern on the daily timeframe, FTM’s rally has stalled at the $1.22978 resistance. This level has temporarily prevented the token from reaching its initial target of $1.68.
Source: TradingView
For FTM to break through the resistance, there needs to be an increase in trading volume along with price movement. If this occurs, FTM could surpass its immediate target and start an upward trajectory toward its long-term rally goal of $3.38.
Is a volume surge on the horizon for FTM?
AMBCrypto’s analysis suggests that FTM’s trading volume could soon experience a significant upswing, as Open Interest has reached an all-time high of $451.41 million.
Source: Coinglass
Read Fantom’s [FTM] Price Prediction 2024-25
The spike in Open Interest indicates a high number of unsettled long contracts, suggesting bullish market sentiment. If this trend continues, it could encourage other market participants to initiate trades, further driving momentum.
As a result, FTM seems well-positioned for a sustained rally, potentially leading to additional gains.
