Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- FTM produced a strong bullish rally off the $0.175 support level.
- Positive funding rates revealed the possibility for future gains, with longs in the majority.
Fantom [FTM] bulls produced the perfect bullish rebound after the extended selling pressure saw the altcoin hit a year-low of $0.17. The 31% rally over the past three days from the $0.175 support level saw FTM smash the $0.2 resistance with the potential for further gains.
Read Fantom’s [FTM] Price Prediction 2023-24
In the meantime, Bitcoin [BTC] extended its bullish rally with a strong push above $30k, as the markets continued to enjoy significant bullish momentum.
Recent gains revived buyers’ confidence
Since mid-July, FTM’s price plummeted, with sellers dominating the price action. The altcoin’s price suffered heavy losses due to multiple hacks on Fantom’s projects and ecosystem.
Earlier, the bullish attempt at a reversal failed at the $0.2 resistance level in early October. This resulted in FTM hitting the year-low of $0.17. However, the recent bullish market conditions provided a springboard for buyers to go on a significant rally.
The buying strength of the current rally was highlighted by the Relative Strength Index (RSI) climbing into the overbought zone. Similarly, the Chaikin Money Flow (CMF) revealed strong capital inflows with a reading of +0.18.
Thus, buyers could achieve another 10% price gains, which would take it to the $0.25 resistance level. A flip of the $0.25 resistance to support would see FTM’s market structure turn bullish.
Sellers on the other hand can wait for a rejection at the $0.25 resistance for shorting opportunities.
Futures market reacted positively to FTM’s pump
The Open Interest (OI) data revealed a significant spike, as market participants got in on the bullish rally. Over the past 48 hours, the OI moved from $39.01 million to $50.58 million, per Coinalyze.
How much are 1,10,100 FTMs worth today?
This suggested that traders were opening more positions with the goal of riding the bullish rebound.
Likewise, the Funding Rate was largely positive, which hinted at the majority of buying positions in the market. This could translate to additional gains for FTM in the short term.