The price of Fantom (FTM) broke out of a 7-month-long resistance last week. Following the retest, it has spiked by more than 25%. This has also brought a lot of hope to the token, with many bullish FTM price predictions being released daily.
Despite all this, data from Santiment suggests that the bull rally may halt, as some metrics indicate that retail sentiment is reaching its peak. The on-chain data from Santiment has observed that Fantom has experienced a major surge, with the FTM price increasing by 63% over the past six days.
This impressive performance is accompanied by a rise in daily active addresses on the network, suggesting that the fear of missing out (FOMO) is reaching its peak among traders. Historically, such spikes in utility driven by new participants often precede market tops.
The data reveals that when the number of active addresses declines, it typically signals a potential entry point for investors. This idea supports the notion that the decline after the top will not last if there are many investors willing to buy the dip.
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Technical Analysis and Fantom Price Prediction
When the price breaks out from a descending channel pattern, as FTM did a few days ago, it typically targets the top of the channel, where the whole move started.
In the case of Fantom, that will be around $1.24. The highest price since the breakout for FTM has been around $1.14. This suggests that the price could still have some room to run before it reaches the major resistance.
Following this, the resistance around $1.24 could be a major challenge to further price growth. Breaking above this price could usher in more bullish sentiment.
