Fantom (FTM) Price Prediction: Will the FTM Rally Continue?

Fantom [FTM] has seen renewed bullish sentiment in the last seven days after the price jumped 18% from $0.29 to a weekly high of $0.37.

After a seven-day price increase of 18%, from $0.29 to a weekly high of $0.37, Fantom [FTM] has seen a resurgence in bullish mood.

At the time of writing, FTM was trading at $0.373. The token increased by more than 10% in the last 24 hours, outperforming both Bitcoin [BTC] and Ethereum [ETH].

According to CoinMarketCap, trading volumes have also increased by 44%, which is probably due to traders entering the uptrend. So, what is causing the FTM rally?

DeFi expert rejoins the Fantom ecosystem

After renaming itself Sonic Labs, Fantom Labs recently revealed that decentralized finance (DeFi) specialist Andrew Cronje will serve as its new Chief Technology Officer (CTO).

In launching Fantom Sonic, the next generation of scalable network that will replace Fantom Opera, the DeFi developer will play a key role.

After the launch of the Sonic Network, FTM holders will be able to move their tokens to a new $S token in a 1:1 ratio.

Cronje's involvement in Fantom has previously served as a development growth driver. For example, in 2022, speculation that Cronje would rejoin the project caused a 45% increase in FTM.

The price is following prior movements, with the recent uptrend. However, such rallies can be short-lived without a strong fundamental basis.

Will FTM continue to rise?

A review of the technical indicators reveals a weakening uptrend. The Moving Average Convergence Divergence (MACD) line is above zero, indicating positive short-term momentum. However, the MACD is trending below the signal line, suggesting a possible weakening rally.

Examining the Chaikin Money Flow (CMF) also revealed that while buying pressure was present, it was gradually decreasing. The CMF has made a lower low but maintained a positive value at 0.13.

The declining CMF, despite the price increase, showed a bearish divergence and a possibility for FTM to test lower support levels.

If the uptrend fails, FTM will fall to the 0.618 Fibonacci level at $0.36. Another lower support level is at the 0.382 Fib ($0.352).

A re-entry of buyers in the market could see FTM rally towards levels seen earlier this month above $0.408.

According to IntoTheBlock, a significant portion of FTM addresses were "out of the money" (in losses) at the time of press. If these addresses decide to sell to reduce their losses, further dips in FTM's price could be expected.