- Analysts warned that FTM’s resistance at $0.50 could trigger a bull trap, with a likely correction towards $0.465.
- Rising open interest and whale activity indicated growing bullish momentum, but caution remained at $0.50.
Phantom [FTM] has recently experienced a significant surge, but analysts issued warnings as the token approached a key resistance level.
Act on $0.4874 At the time of writing, FTM has seen a slight decline of -0.76% over the past 24 hours, while an increase of 25.29% has been recorded over the past week. The market capitalization was $1.36 billion, with 2.8 billion FTM in circulation.
Crypto analyst @CryptoJobs3 has expressed concerns about a possible bull trap as the FTM approaches the $0.50–$0.5050 range.
Citing a bearish divergence on the RSI, the analyst stated:
“A correction is possible; the price could move towards the $0.470 – $0.4650 range again.”
A breakout above $0.50 could push the price towards $0.5200, but the analyst remained cautious about entering long positions at current levels.
Bullish momentum with caution
Several key technical indicators pointed to near-term bullish momentum, but overbought conditions could lead to a pullback.
The Bollinger Bands showed that the price was near the upper band, signaling possible overbought conditions.
The tight bands indicated low volatility, suggesting a breakout is imminent.
Source: TradingView
The MACD showed a bullish crossover, with the MACD line above the signal line and positive histogram bars. This indicated growing bullish momentum, although the trend is still in its early stages.
Meanwhile, volume remains low, indicating weak conviction behind the recent price increase.
Analysts suggested that a break above $0.50 accompanied by rising volume would confirm a bullish trend, but failure to breach this level could lead to a pullback.
Fantom: Increased market activity?
The FTM Futures Open Interest chart revealed a notable increase in open interest, which rose to $174.85 million on September 11.
This increase in Open Interest corresponded with FTM’s price moving towards $0.50, reflecting increased trader participation and speculative activity.
Source: Coinglass
For months, Open Interest has fluctuated between $100 million and $200 million, indicating limited trading activity.
The recent rise in both price and Open Interest could indicate growing confidence in FTM’s future price movement, but it also suggested the potential for greater volatility.
FTM’s Total Liquidations chart showed that $141.51K of long positions were liquidated on September 11, compared to $10.28K of short positions. Binance saw the majority of long liquidations at $88.86K.
Source: Coinglass
This wave of liquidations indicated that many traders were caught off guard by the recent price swings, especially as the price approached $0.4864.
The liquidation data showed that long traders in particular were overly optimistic about the continued rise in the FTM, leading to liquidations when the price could not move higher.
The continued uncertainty around the $0.50 resistance level kept traders cautious.
Increased purchasing pressure
A recent one report by AMBCrypto indicated increasing buying pressure. The supply of FTM on the exchanges has decreased, while the supply outside the exchanges has increased.
This trend suggested that holders were delisting their assets, which was usually a sign of long-term confidence in the assets.
Read Fantom’s [FTM] Price forecast 2024–2025
Additionally, whale activity around FTM has increased, as evidenced by a spike in the number of large transactions. This increase in whale movement and currency outflows has likely contributed to FTM’s recent bullish momentum.
However, traders remain wary of a possible bull trap near the current price level.
Credit : ambcrypto.com
