Fantom Price Analysis: Has FTM Presented a Buying Opportunity?
Fantom could have shown some bullish on-chain suggesting a buy opportunity.
Key Takeaways
- Fantom’s on-chain signals indicate a potential recovery.
- Price-Daily Active Addresses (DAA) Divergence alsosuggests buying opportunity.
- Meanwhile, the MVRV ratio implies FTM is in accumulation zone.
Fantom (FTM) has a potential pathway to recovery, spurred by bullish signals from on-chain indicators and price action. Since it fell more 54% from its March 22 high of $1.23, the depth of this decrease alone could suggest FTM is undervalued. However, there is most concrete evidence to believe that is the case.
Fantom On-chain Indicators
A key indicator, the Price-Daily Active Addresses (DAA ) Divergence, shows a growing disparity between the price movements and the daily active addresses. This, in turn, implies increasing network utility and potential long-term value despite short-term price drops. This divergence is currently presenting a “buy” signal.
Supporting this bullish outlook is the Market Value to Realized Value (MVRV) ratio. With a 30-day MVRV at -27%, suggesting recent losses, this metric often indicates that the asset is in a zone ripe for accumulation, historically followed by rallies.
Finally, looking at the Netflow , there is a slightly negative trend from April 13, when FTM reached its recent low. With around 1.19 million FTM tokens withdrawn from exchanges and then deposited, it could signal the accumulation has already started.
Fantom (FTM) Price Analysis
FTM began a new bullish cycle, starting from a low of $0.17 on October 18, 2023. It peaked at $0.57 by December 25, before retreating to $0.30 by January 24. These shifts mark the early phases of what should be a larger five-phase cycle.
By March 22, FTM had risen slightly over $1.20. However, it struggled to advance beyond this point, oscillating near a resistance level at $1.15.
This development is the third stage of a five-part cycle which started after the October 2023 low. Meanwhile, the Relative Strength Index on the daily chart showing overbought conditions suggests that a pullback is likely. That would, in turn, signify the start of the fourth phase of the cycle.
However, after this recent price drop from March, the daily chart RSI could have provided a buy signal, which it did on January 23. Although it fell to 36% on April 13 and is still not considered undervalued, it could suggest that, relatively speaking, the low is in.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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