Fantom (FTM) has been making waves in the cryptocurrency market, with a remarkable 20% surge in just two days. The altcoin recently broke through a critical price level at $0.435, clearing a crucial Fair Value Gap, which has sparked strong bullish momentum. But what’s behind this rapid rise, and can FTM continue climbing?
As $FTM (Fantom) continues to hold well broken out, we continue to watch for an over 450% run to the the approximate $3 levels and prices, through what looks to be a major amount of consolidation, could be set for a break above… https://t.co/D1DXHrWIR7 pic.twitter.com/rQGOJzcUgW
— JAVON⚡️MARKS (@JavonTM1) January 30, 2025
Whale Activity Fuels Bullish Sentiment
A key factor behind FTM’s recent rally is the surge in whale activity. Data from IntoTheBlock reveals that large transactions involving FTM spiked by 194% in just 24 hours. This uptick in whale activity indicates that major investors are capitalizing on FTM’s current discounted price, and historically, such movements often lead to additional price gains as smaller traders follow suit.
When whales start accumulating a token, it typically drives the price up. With whales showing confidence in FTM’s future, increased buying pressure is expected in the coming days, which could push FTM to even higher price levels. This wave of whale activity signals strong optimism and potential for further gains.
MVRV Ratio Points to Undervaluation
Another factor contributing to the rally is FTM’s Market Value to Realized Value (MVRV) ratio. According to Santiment data, FTM’s MVRV ratio currently sits at -100%. A negative ratio suggests that many investors are holding FTM at a loss, which could indicate that the token is undervalued. This often sparks buying activity as traders look to capitalize on discounted prices before the market rebounds.
As the MVRV ratio signals undervaluation, there’s a strong possibility that more investors will step in, driving up demand and pushing FTM’s price higher. If this trend continues, Fantom could be positioned for a strong recovery.
Also Read: Fantom (FTM) Price Surges 20%: Whale Accumulation and Key Indicators Signal Bullish Breakout
What’s Next for FTM?
With rising whale activity and a favorable MVRV ratio, FTM’s 20% rally is just the beginning. As bullish sentiment builds, FTM may soon target higher resistance levels, potentially continuing its upward trajectory. The market is watching closely to see if this momentum can be sustained in the days ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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