Fantom's price is currently on a positive trajectory, experiencing a notable rally that has seen it rise by 6.31% in the last 24 hours, trading at $0.6786. With a market cap of $1.90 billion and a 24-hour trading volume surge of 68.26% to $142.91 million, the altcoin is capturing attention. However, despite this bullish momentum, mixed market signals indicate a complex future for FTM.

Technical Analysis: A Bullish Trend in an Ascending Channel

Fantom has been operating within an ascending channel, with key resistance levels identified at $0.7955 and $0.9330. This upward trend suggests that FTM could maintain its momentum if it adheres to the established support and resistance boundaries. If the price manages to break above the $0.7955 resistance, it could further bolster bullish sentiment, pushing Fantom towards its next target at $0.9330.

Indicators of Volatility

The current setup also highlights widening Bollinger Bands, a sign of increasing volatility as FTM approaches the upper band. This widening typically indicates that buyers are in control of the market. If the price continues to stay close to the upper band, it may signal a potential breakout to new highs.

The Relative Strength Index (RSI) is at 54.72, indicating a neutral stance. This level suggests that FTM still has room to rise without entering overbought territory, supporting the possibility of further gains if buying momentum persists.

Price DAA Divergence: A Cautionary Note

Despite the positive price action, a concerning trend is emerging with the Price Daily Active Addresses (DAA) Divergence. Currently recorded at -79.72%, this metric indicates a decrease in active addresses, raising concerns about network growth sustainability. Fewer active addresses could weaken FTM's foundation if selling pressure intensifies, potentially leading to a pullback if activity doesn’t improve.

Mixed On-Chain Signals

Fantom's on-chain data presents a mixed picture. While the Net Network Growth is modest at 0.16%, indicating slow adoption, the concentration of large holders has risen by 0.04%. This suggests that significant investors are not offloading their positions, which is generally a bullish sign. However, a 1.38% decrease in Large Transactions hints at reduced sell-off pressure from major players.

Conversely, the “In the Money” metric shows a slight bearish tilt at -0.79%, indicating a small decline in profitable positions. These mixed on-chain signals reflect cautious optimism, prompting investors to closely monitor sentiment shifts in the market.

Liquidation Data: Pressure on Short Traders

Fantom's liquidation data reveals that short positions have faced significant pressure, with $162.78k in liquidations compared to $95.54k for long positions. This trend suggests that short traders may have misjudged the market direction. If FTM maintains strength above $0.67, further short liquidations could push the price higher, creating a positive feedback loop.

Conclusion: A Cautiously Optimistic Outlook for FTM

Overall, Fantom's current momentum, supported by favorable technical indicators and a balanced on-chain picture, presents a generally positive outlook. However, caution is warranted due to the Price DAA Divergence and the slightly bearish “In the Money” metric.

If FTM can clear the critical $0.7955 resistance with sustained trading volume, it may continue its rally toward new highs within the ascending channel. Investors should remain vigilant, as the mixed signals could lead to volatility in the near term.