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The cryptocurrency market is witnessing a shift as the memecoin rally slows down, allowing altcoins, especially in the DeFi sector, to attract attention. Among these, Fantom (FTM) has garnered significant interest with its recent price movements. Investors outside the market, predicting a trend reversal, are particularly interested in this DeFi altcoin resurgence. Many are questioning whether this renewed demand for Fantom can push its price beyond the $1 level.
Fantom’s Price Performance
Today, Fantom saw a notable 6% increase, resulting in a bullish engulfing candle that formed a morning star pattern. This pattern, typically indicating the end of a pullback phase, is particularly significant as it formed around the 78.60% Fibonacci level, near the critical psychological mark of $0.50, and along a support trend line. Such formations are generally considered strong indicators of a shift from a bearish to a bullish trend.
The formation of the morning star pattern at a critical support level suggests an increased likelihood of the bearish trend reversing into a bullish trend within the falling wedge pattern. This possibility becomes more pronounced given FTM’s recent major correction rally, which saw a 36% decline over the past 14 days.
Currently, FTM is trading at $0.5796, experiencing a 6.01% intraday growth following a failed price surge the previous night. The increase in trading volume further supports the altcoin’s potential for an upward trend.
Technical Indicators and Their Implications
The daily timeframe Relative Strength Index (RSI) for Fantom’s FTM indicates a trend reversal rolling from the oversold boundary, enhancing the chances of a bullish trend. However, the absence of a significant bullish breakout suggests that while an upward trend is possible, it may not be strong. Additionally, the Exponential Moving Average (EMA) indicates a bearish effect due to the recent correction, and a decline in the 50-day EMA raises concerns about a potential death cross, which could signal further bearish tendencies.
According to Fibonacci levels, the reversal from the 78.60% level could soon challenge the 0.63 dollar mark, corresponding to the 61.80% level. If buyers manage to surpass the supply zone at this level, FTM‘s price might encounter resistance around $0.73, which aligns with the 50% Fibonacci level. From this point, a continued upward rally could eventually test the psychological $1 level, a significant milestone for Fantom.
