Fantom (FTM) Indicates Strong Signs of Recovery After Testing Support at $0.65

After testing the support level at $0.65 on the daily charts, Fantom [FTM] showed strong signs of recovery. This level proved to be significant as it sparked the previous rally between mid-November and mid-December.

At the time of writing, the altcoin had gained by over 10% in less than 24 hours.

As the altcoin regains strength, its technical and on-chain metrics suggested that FTM might be gearing up for another upward surge.

Key support zone at around $0.65 tightens

FTM’s support zone around $0.65 aligns with Fibonacci retracement levels, specifically the favorable reversal zone between 0.618 and 0.718. Historically, this confluence acted as a launchpad for FTM bullish moves.

On the weekly chart, Fantom continues to establish a bullish structure with higher highs and lows on the weekly time frame. This reinforces the narrative that the current pullback may be a healthy consolidation phase before another rally.

On-chain metrics lean bullish

AMBCrypto’s analysis of on-chain data from IntoTheBlock further confirmed Fantom’s bullish potential. Large transaction and bid-ask volume held the lion’s share of the bullish signal.

Large transactions on the network surged by 5%, highlighting growing interest from institutional and whale investors. Its bid-ask volume balance also jumped by 18.43%, indicating surging buying pressure.

These metrics aligned with the altcoin’s current bullish momentum, increasing the odds of Fantom breaking through its next resistance level. If large transactions continue, the increased demand could propel FTM to test higher resistance zones.

What next for Fantom

Both technical and on-chain indicators suggested that the $0.65 support zone could finally give Fantom a reason to start its new rally.

The continuation of large transactions and sustained buying pressure are crucial for FTM to break its next resistance level. If the bullish trend continues, then FTM could set new highs and extend its upward trajectory.