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Fantom (FTM) has recently emerged as a standout performer in the altcoin market, posting impressive gains of 20% over the past 30 days to trade at $0.755 at press time. Despite the rally, market indicators suggest that the upward trend may continue, buoyed by increased whale activity and a significant technical development—a golden cross formation.
Whale Activity Signals Further Momentum
A surge in trading volume has accompanied FTM’s price rise, increasing by a staggering 140%, according to CoinMarketCap. This uptick in volume coincides with rising whale activity, a key factor in driving price momentum. Data from IntoTheBlock reveals that transactions exceeding $100,000 soared from 3 million to 201 million FTM in just 24 hours, marking the highest whale transaction volume in over a year.
Whales currently control 73% of the total Fantom supply, making their market moves critical in determining FTM’s price trajectory. With such significant transactions, it’s clear that these large holders are positioning themselves for further gains. This level of whale activity suggests FTM could be on the verge of even more substantial price moves.
Exchange Netflows Turn Negative, Easing Selling Pressure
In another bullish signal, exchange netflows for FTM have turned predominantly negative over the past two days. This indicates that traders are withdrawing their tokens from exchanges, a move often interpreted as a reduction in selling pressure. When exchange netflows are negative, traders are less inclined to book short-term profits, leaving room for the price to rise further.
This decrease in selling pressure aligns with the broader market sentiment around FTM. Traders appear to be betting on continued upside, with many taking long positions in anticipation of sustained gains.
Fantom Forms a Golden Cross
One of the most compelling indicators of FTM’s potential for further gains is the formation of a golden cross on the one-day chart. A golden cross occurs when the 50-day Simple Moving Average (SMA) crosses above the 200-day SMA, signaling that short-term momentum is gaining strength. Historically, golden crosses have been reliable indicators of bullish trends, and FTM’s recent crossover could point to an extended rally.
Supporting this outlook is the On-Balance Volume (OBV) indicator, which has been trending upwards. Rising OBV suggests increased buying activity, a crucial factor for sustaining the current price rally.
However, FTM is currently facing resistance at $0.797. A break above this key level could propel the token to its next target at the 1.618 Fibonacci level ($0.902), representing a potential 20% increase. On the downside, if buyers hesitate, FTM could retrace to test support at $0.732.
Also Read: Fantom (FTM) Surges 7.31% In A Week, Eyeing Breakout To $1 Milestone
Market sentiment remains firmly positive, with data from Coinglass showing an increase in Funding Rates to their highest level in over a week. This suggests that more traders are willing to pay a premium to maintain their long positions, further reinforcing the bullish outlook for FTM.
In summary, Fantom’s recent performance, bolstered by whale activity, declining exchange netflows, and the formation of a golden cross, positions it for further gains. As the broader market sentiment around the token remains positive, all eyes are on whether FTM can break through resistance and continue its upward march.
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.
A lifelong learner with a thirst for knowledge, I am constantly seeking to understand the intricacies of the crypto world. Through my writing, I aim to share my insights and perspectives on the latest developments in the industry. I believe that crypto has the potential to create a more inclusive and equitable financial system, and I am committed to using my writing to promote its positive impact on the world.
