Fantom (FTM) has been making waves in the cryptocurrency world recently, with its price surging by 20% in just 24 hours. At the time of writing, the altcoin is trading at $0.836, inching closer to a key resistance level of $0.84. With a blend of technical indicators and on-chain data fueling optimism, all eyes are on whether FTM can push past this critical barrier and continue its upward trajectory.

What’s Driving Fantom’s Latest Surge?

Several factors are contributing to Fantom’s recent bullish performance, but perhaps the most notable is the project’s rebranding to Sonic. This shift is more than just a new name; it represents a strategic change aimed at making the blockchain more appealing to investors and users alike. By refreshing its brand, Fantom hopes to position itself as a more attractive option in the competitive world of decentralized finance (DeFi) and smart contract platforms.

In addition to the rebranding, on-chain data suggests that the surge in FTM’s price is not just driven by speculation. According to analytics platform IntoTheBlock, the number of active addresses on the Fantom network has surged by 186%. This surge in user activity indicates that more people are interacting with the blockchain, which is often a sign of growing adoption and increased trust in the platform. Higher network activity is typically a bullish signal, suggesting that the blockchain’s ecosystem is gaining traction.

A Decline in Exchange Outflows Supports FTM’s Rally

Another factor behind FTM’s rally is a noticeable decline in exchange outflows since January 6. Outflows refer to the movement of assets from exchanges to private wallets. A reduction in outflows can indicate that fewer people are selling their holdings, which may result in reduced selling pressure. When combined with the ongoing surge in network activity, this suggests that the current price rally might have a more sustainable foundation rather than being a short-lived, speculative pump.

The Critical $0.84 Resistance Level

For all the optimism surrounding Fantom, the altcoin still faces a crucial hurdle: the $0.84 resistance level. Historically, this price point has acted as a significant barrier during previous rallies. If FTM can break past this level, it could trigger a wave of buying pressure, potentially pushing the price higher and allowing it to test the next major resistance around $1.

The $1 price level is a psychological milestone for many traders, and breaking through it would mark a significant achievement for Fantom. However, failing to breach the $0.84 resistance could lead to a retracement, with the altcoin potentially revisiting lower support levels, such as $0.80.

What’s Next for Fantom?

As we look ahead, much of FTM’s future performance depends on its ability to navigate the $0.84 resistance level. If Fantom can clear this hurdle, the altcoin could continue its upward momentum, testing higher price zones and attracting even more attention from investors. On the other hand, if it fails to break through the $0.84 resistance, we might see a period of consolidation or retracement.

However, there is reason to remain optimistic in the long term. The 186% increase in active addresses is a strong indicator of growing adoption, which bodes well for the network’s future. Additionally, the Sonic rebranding has attracted more eyes to the project, and the reduced selling pressure suggests that many investors are holding onto their FTM in anticipation of future price appreciation.

The combination of technical momentum and growing user adoption makes it clear that Fantom is an altcoin to watch closely. For now, the $0.84 resistance remains the key point of focus. If FTM can break through, it could be on its way to even greater heights. If not, the price could consolidate before making another attempt to push higher.

What Investors Should Watch for in the Coming Weeks

Investors and traders will be closely monitoring Fantom’s price action in the coming days to determine whether the current rally has the legs to continue. As of now, the market sentiment surrounding FTM is generally positive, with many seeing the recent price surge as a signal of broader long-term growth.

As Fantom’s rebranding efforts continue to unfold, the network’s growing user base could play a pivotal role in supporting its future price increases. However, much will depend on how the altcoin handles its resistance at $0.84. A break above this level would likely signal further bullish sentiment, while a failure to clear it could lead to a price correction and increased caution among traders.

Conclusion

Fantom’s recent price surge, fueled by its Sonic rebranding and growing network activity, has fueled considerable excitement. But the $0.84 resistance level remains the critical factor that could determine the next direction for the altcoin. Investors should pay close attention to this level in the coming days, as a break above it could lead to significant gains, while failure to clear it might result in a pullback.

With increasing adoption, reduced selling pressure, and ongoing technical momentum, Fantom appears to be in a strong position for potential long-term growth. But as with any cryptocurrency, much depends on how it navigates key resistance levels like $0.84 in the near term.