FTM leads crypto rally with 17% surge, eyes further gains

Fantom has become a leading performer in the cryptocurrency market, experiencing a 17% increase in value.

Fantom (FTM), a blockchain platform optimized for decentralized finance applications, gained 17% on the morning of August 22, changing hands at $0.461, according to price data from crypto.news. The crypto asset’s daily trading volume has more than doubled from the previous day, hovering around $284 million, while its market cap stands at $1.29 billion, taking it to 62nd place among the largest cryptocurrencies.

FTM 24-hour price chart – August 22 | Source: crypto.news

The token’s price has surged 67% since its low of $0.276 on August 5, when crypto and stock markets crashed, leading to liquidations of over $1 billion. Despite the recent price increase, FTM is still 86.6% off its all-time high of $3.46 recorded in October 2021.

Fantom’s current price at $0.4621 places it above the upper Bollinger Band at $0.4520, signaling a possible breakout from typical volatility levels. This position above both the middle band and the upper band at $0.3655 suggests unusual upward momentum in the market and is indicative of strong bullish sentiment.

FTM Bollinger Band and RSI – August 22 | Source: crypto.news

Given that FTM price has broken out of the upper Bollinger Band, there may be concerns about the asset being overbought, but the Relative Strength Index at 61.93, while high, still does not definitively categorize the asset as overbought, which is typically indicated by an RSI above 70. This suggests that while buying momentum is strong, there may still be room for upward movement before the asset potentially enters overbought territory.

The scenario likely reflects a market that is responding to positive stimuli, pushing the price above its usual resistance levels but has not yet reached an overbought reversal point. This could attract more attention from investors looking to capitalize on the momentum and potentially push the price higher in the short term.

However, traders should also be wary of rapid changes that could lead to a rapid pullback if the price returns to the normal range of the Bollinger Bands.