The cup and handle pattern on Fantom (FTM)'s price chart is generating optimistic expectations for investors and traders. This is a typical bullish pattern, often predicting strong breakout potential when surpassing key resistance levels.
Detailed Analysis:
1. Technical Pattern:
• The cup and handle pattern typically indicates accumulation and preparation for a price increase.
• FTM is currently trading near $1.28, while the important resistance level is at $1.40.
• A breakout above $1.40 could pave the way for a significant price increase, with subsequent targets potentially reaching from $1.60 to $1.80.
2. Technical Indicators:
• MACD (Moving Average Convergence Divergence): Currently in the bullish zone, indicating positive momentum.
• ADX (Average Directional Index): At 26.39, it confirms that the current trend is strengthening.
• Trading volume: Recent increases reinforce confidence in the breakout potential.
3. On-Chain Indicators:
• Net network growth: Increased by 0.45%, indicating participation from new users.
• Large trades increased by 0.62%: This is an important sign of participation from large institutions.
• Open Interest: Increased by 4.75%, reaching $377.65M, reflecting high expectations from the trading community.
4. Factors to Consider:
• If FTM does not break above $1.40, the price may temporarily pull back to support levels around $1.20 before continuing to rise.
• External factors such as the overall trend of the crypto market or unexpected news events can also influence price volatility.
Conclusion:
Fantom (FTM) is at a critical stage. With supporting technical and on-chain indicators, along with a clear cup and handle pattern, the likelihood of a breakout above $1.40 is very high. However, traders need to closely monitor price action around this resistance level to confirm the upward momentum. If successful, FTM could witness a strong rally, with short-term targets in the range of $1.60 - $1.80.