Fantom (FTM) Price Climbs as Buying Pressure Gains Momentum

Fantom’s (FTM) month-long decline caused its price to fall to a local bottom of $0.53 on June 18. Since then, the coin’s price has risen by 5%.

As the coin approaches its 20-day Exponential Moving Average (EMA), its buying pressure has begun to gain momentum.

Fantom Bulls Attempt to Regain Control

At press time, FTM trades at $0.57. It is currently in an uptrend and poised to cross above its 20-day EMA. 

This moving average tracks an asset’s average price over the past 20 trading days. When the asset price, trading below this key moving average for an extended period, starts to rise and attempts to cross above it, it is seen as a bullish signal.

Traders might interpret this as an indication that buying activity is gaining momentum and consider entering a long position, expecting the price to continue rising.

Fantom Analysis. Source: TradingView

This is also confirmed by readings from FTM’s Moving average convergence/divergence (MACD) indicator. Also assessed on a daily chart, the coin’s MACD line (blue) is currently attempting to intersect its signal line in an uptrend. 

Read More: Top 5 Yield Farms on Fantom

Fantom Analysis. Source: TradingView

This indicates a resurgence in bullish sentiment toward the altcoin. It suggests that its short-term moving average is poised to rally past its long-term moving average. Such a crossover is a bullish signal, prompting traders to view it as a buying opportunity.

FTM Price Prediction: Funding Rate Remains Positive

Fantom’s significant price decline in the past few weeks did not affect the resolve of its derivatives market participants. Its funding rate has remained positive since May 3. 

Fantom Funding Rate. Source: Coinglass

The funding rate is a periodic payment between traders holding long and short positions in perpetual futures contracts. It ensures that the futures price remains close to the spot price of the underlying asset.

When it is positive, it means there is more demand for long positions. More traders are buying the asset in expectation of a price rally. When this happens, traders are optimistic about the asset’s future price and are willing to pay extra to maintain their long positions.

If FTM maintains its uptrend, its price will rally to $0.59.

Fantom Analysis. Source: TradingView

However, if the bears re-emerge and regain control, FTM’s price will fall to $0.54.