FTM secures top gainer spot with 8% jump, but market signals caution ahead

Fantom, a scalable blockchain platform for DeFi, rose by 8% on the morning of August 16, becoming the top performer in the cryptocurrency market.

At the time of writing, Fantom (FTM) was still up 8%, changing hands at $0.393, according to price data from crypto.news. The crypto asset’s daily trading volume has increased by 84% to around $274 million, while its market cap stands at $1.1 billion, taking it to the 70th spot among the largest cryptocurrencies.

FTM 24-hour price chart – August 16 | Source: crypto.news

The token’s price has surged 42% since its low of $0.276 on August 5, when crypto and stock markets crashed, leading to liquidations of over $1 billion. Despite recovering to levels seen on March 21, FTM is still 88% off its all-time high of $3.46 recorded in October 2021.

The current price of Fantom places it slightly above the middle Bollinger Band at $0.3691 and well below the upper band at $0.4581, while the lower band is at $0.2801.

fTM Bollinger Band and RSI – August 16 | Source: crypto.news

This suggests that FTM is trading within the typical range of the Bollinger Bands, specifically the upper half of this range. The fact that the price is above the middle band but has not yet approached the upper band could indicate that market sentiment is moderately bullish. However, the token is yet to show the strength needed to push past the upper resistance level at $0.4581.

FTM consolidates with neutral indicators, awaiting market catalyst

If the FTM remains within the Bollinger Bands, it indicates that price action is within expected volatility levels and has not yet reached overbought or oversold levels. Close proximity to the middle band indicates a consolidation phase or a mild uptrend but no strong breakout.

Additionally, the Relative Strength Index is currently at 49.61. This level is close to the neutral 50 mark, indicating neither overbought nor oversold conditions. This further supports the idea that FTM is in a period of consolidation and the market is undecided on the next significant move.

FTM is showing a slight bullish trend by trading above the middle Bollinger Band, while the lack of a strong push towards the upper band and the neutral RSI suggest that the token is in a state of consolidation.

The market may be waiting for a catalyst to determine the next direction, whether it’s an upward momentum test of the upper band or a possible pullback to the middle or lower bands. A broader analysis of FTM’s price action on the daily chart also reveals a falling wedge pattern. The price has declined significantly since March 2024, falling 78.59% from a high of $1.22 to a low of $0.26.

On a more optimistic note, FTM’s price action suggests that the bullish phase has begun, as the token has begun to bounce off the support trendline. Over the past 11 days, FTM has seen a 33.51% increase and has broken above the 20-day EMA. However, a recent surge in selling pressure near $0.40 led to a sharp price rejection on the latest daily candle, raising concerns about a possible bearish reversal.