Fantom (FTM) experienced a rapid increase on December 14, achieving an impressive intra-day rally of 18%. This rise brought the cryptocurrency to its highest price point since May.
Data from CoinMarketCap shows that despite FTM losing some of these gains since then, it has remained at a high level of 6% over the last 24 hours. There was an increase in demand for FTM last week. Evaluating the performance of the token on the daily chart revealed that a new bull cycle had started on December 6.
Furthermore, the token’s moving average convergence/divergence indicator (MACD) witnessed the MACD line crossing the trend line in an uptrend. When a token’s MACD line crosses above the trend line and begins to show an upward trend, it is considered a bullish signal. The mentioned crossover could indicate that the short-term moving average (MACD line) has risen above the long-term moving average, suggesting the bulls are resurfacing. Accompanied by the bulls taking over from the bears on December 6, FTM’s price surged by over 20%.
Since the MACD crossover, the token’s Chaikin Money Flow (CMF) has initiated an uptrend, seen at its highest level since January when this article was written. This indicator measures the volume of money flowing in and out of the token. Therefore, when it rises in this manner, it indicates that more money is entering the market, which could lead to a price increase.
Additionally, fundamental momentum indicators that show FTM accumulation surpassing token distribution have positioned near overbought peaks. For example, the token’s Relative Strength Index (RSI) is at 65.93, and the Money Flow Index (MFI) is at 73.63. Similarly, FTM’s On-Balance Volume (OBV) is at its highest level of all time, at 19.97 billion. The indicator is used to measure buying and selling pressure on a token. An increasing OBV may indicate strong buying pressure and could suggest that investors are accumulating the token.