Fantom (FTM) is grabbing attention in the cryptocurrency market as whale activity reaches its highest point in a year. This surge in large transactions, combined with bullish technical indicators, has sparked discussions about whether FTM is poised for a significant price rally, potentially increasing by 20%.
Recent Trends in the Market
Fantom has recently experienced a “golden cross,” a technical pattern that occurs when the 50-day Simple Moving Average (SMA) crosses above the 200-day SMA. This crossover is often seen as a bullish signal, indicating that short-term momentum is gaining strength. Currently, FTM is trading at around $0.755, with a 20% gain over the past 30 days, demonstrating its resilience in the altcoin market.
One of the most notable developments is the sharp rise in trading volumes. According to Coin Market Cap, trading volumes have surged by approximately 140%. Specifically, transactions exceeding $100,000 have skyrocketed from 3 million to an impressive 201 million within just 24 hours. This significant increase suggests heightened activity among whales, indicating that large holders are re-engaging with the market.
Whale Activity and Market Sentiment
Whales, or large cryptocurrency holders, currently control about 73% of the total supply of Fantom. This concentration means that their trading activity can greatly influence market movements. The recent surge in large transaction volumes indicates potential price volatility, as these large holders may be preparing for significant trades.
Furthermore, data on exchange net flows reveals an interesting trend: over the past two days, traders have been withdrawing FTM tokens from exchanges, resulting in predominantly negative net flows. This behavior is generally seen as a bullish sign, indicating that traders are not looking to sell but rather accumulate or hold their assets. The decrease in available supply on exchanges could alleviate selling pressure and allow FTM to continue its gains.
Technical Indicators Support a Rally
The formation of the golden cross is not the only bullish signal for FTM. The on-balance volume (OBV) indicator, which measures buying and selling pressure, has also shown an upward trend. This increase in OBV reflects growing buying interest, which is crucial for sustaining any upward momentum.
Despite this positive outlook, FTM has encountered resistance at the $0.797 level. If the price successfully breaks through this barrier, analysts believe FTM could rally up to the 1.618 Fibonacci level at $0.902, representing a potential 20% increase. On the other hand, if buyer interest starts to wane, FTM may test support at $0.732.
Increased Funding Rates Indicate Positive Sentiment
Recent data from Coin glass highlights another bullish trend: funding rates for Fantom have reached their highest level in over a week. This increase suggests that more traders are taking long positions on FTM, reinforcing the positive sentiment surrounding the token. Traders willing to pay higher funding rates typically demonstrate confidence in potential price increases, indicating that market sentiment leans towards bullishness.
Conclusion
Fantom’s recent surge in whale activity, along with promising technical indicators and increased trading volumes, points to a potentially bright future for FTM. The formation of the golden cross and negative exchange net flows indicate that selling pressure is diminishing, which could pave the way for a 20% rally.
As the market evolves, traders and investors should closely monitor these developments to assess the potential for further gains in Fantom’s price. The next few days will be crucial in determining whether FTM can break through key resistance levels and maintain its current momentum. With the support of whale activity and positive market sentiment, Fantom may be on the verge of an exciting price journey.
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