The price of Fantom (FTM) has entered a period of stabilization, and this trend may continue. The main reason is the absence of significant fluctuations for this altcoin over the past several weeks. However, there is now activation of buy signals in on-chain analytics, which could help FTM exit its state of consolidation.

Emergence of Buy Signals for Fantom

With a trading point above $0.63, Fantom is showing positive signals that prevent further decline. This is confirmed by the MACD indicator, which analyzes the relationship between two moving averages of prices, and helps assess the current dynamics of the asset and potential trading signals.

When the indicator line (blue) crosses the signal line (red), it indicates a bullish crossover. Such a convergence of lines predicts a possible increase in the value of Fantom.

It is also important to note the divergence in the Daily Active Addresses (DAA) indicator. This indicator, used for cryptocurrency analysis, allows assessing the relationship between the price of the asset and the number of active addresses in its network, which can serve as a buy signal and indicate optimal zones for accumulation.

In the event that investors begin to actively purchase FTM, a recovery period is likely to follow.

FTM Price Forecast: Possible Recovery

At the time of writing, the price of Fantom is $0.67, which is above the important support level at $0.63, tested repeatedly for strength throughout the year and remaining stable since the beginning of March.

There are also resistance levels at $0.79 and $0.88, which previously acted as both support and resistance, and overcoming them has always been a challenging task.

Even if FTM shows growth in the coming trading sessions, it may be limited to the $0.79 level, which is the lower boundary of the resistance zone. However, it is unclear whether the price will be able to overcome the $0.80 threshold.

However, if the support at $0.63 is breached, this could lead to a significant price drop to $0.55 and below, which would refute the positive forecast and lead to further losses for FTM.