Oct 1, 2024

6thTrade

Fantom (FTM), now transitioning to its upcoming iteration, Sonic (S), is making headlines as one of today’s top market gainers. Its price has surged by 8% in the past 24 hours, sparking interest across the crypto community. With momentum building, many indicators suggest that this could be just the beginning of a much larger rally. This analysis dives into the key factors behind FTM’s current rise, highlights crucial resistance levels, and explores the potential opportunities awaiting investors.

Fantom's Strategy to Support Holders Amid Price Recovery

As of now, Fantom's price sits at $0.75, a level where 53% of total FTM holders are enjoying profits. Encouragingly, those still waiting to break even could soon see positive returns as well, according to the Global In/Out of Money (GIOM) Around Price indicator. $FTM

The GIOM helps to assess which addresses are currently making profits, breaking even, or sitting at a loss based on the average on-chain cost basis of tokens. Essentially, it allows investors to understand how close they are to profitable territory depending on price fluctuations. Larger clusters of holders around specific price levels suggest stronger support or resistance zones for FTM.

Data from IntoTheBlock shows that around 25,230 addresses accumulated FTM when its price ranged between $0.94 and $1.50. These holders, collectively owning over 100 million tokens, are currently in the red. However, the current support level of $0.75 could provide the lifeline they need—if FTM maintains this upward trajectory, these holdings could soon be valued at approximately $75 million, turning losses into gains.

In addition, the increasing open interest for Fantom points to growing enthusiasm and investor confidence. Open interest is essentially a measure of the money flowing into FTM-related contracts. Historically, an increase in open interest during price gains has often led to stronger and more sustained uptrends for the token. This trend is repeating itself now, indicating that FTM might be poised for further gains, potentially closing in on the $1 mark in the near future.

Traders' Confidence Bolsters Bullish Momentum

Adding to the optimism, renowned crypto trader Ansem, who boasts over 503,900 followers on X (formerly known as Twitter), shares a similar bullish sentiment. Ansem notes that the previous quarter was all about accumulation, but this new quarter marks a pivotal phase for Fantom—one where higher prices seem likely. He explains that FTM’s recent price movements reflect a broader shift in market regimes.

“FTM price action is a good indicator of the different regimes we are in now. March -> July: alts down only [-70-80%]. July -> September: sideways accumulation. Currently, continuation without high timeframe retests is usually the beginning of an aggressive trend,” Ansem shared. His analysis points to this period as an early stage of an aggressive upward trend, meaning there could be significant gains ahead.

A Look at the Technicals: Bullish Patterns and Indicators

From a technical perspective, the daily chart for FTM shows promising signs. Recently, the token formed a bullish inverse head-and-shoulders pattern, often a harbinger of further upward movement. Currently trading at $0.75, several indicators are pointing to a continuation of this rally.

The Directional Movement Index (DMI) supports this positive outlook. The DMI is used to gauge the strength and direction of a trend. At present, the DMI (red), which represents selling pressure, is low at 5.68, suggesting that sellers are not in control of the market. In contrast, the DMI (green), which represents buying interest, is on the rise at 2.08.

Additionally, the Average Directional Index (ADX), which measures the overall strength of the trend, is at an impressive 48.49. An ADX reading above 25 generally indicates a strong trend, and in this case, it suggests that Fantom's price momentum could keep pushing higher. If these indicators hold steady, FTM could break past the $0.84 resistance in the short term. Should this happen, the next targets for the altcoin lie at $1.01, and potentially as high as $1.14.

However, caution remains necessary. A significant number of holders may decide to book profits if prices reach these levels, which could lead to a pullback. In such a case, FTM could revisit the $1.14 mark before finding renewed strength to push higher.

Looking Ahead: An Optimistic Outlook for Fantom

The combination of bullish patterns, growing open interest, and strong technical indicators paints an optimistic picture for Fantom. The project’s transition to Sonic, along with a promising price recovery, signals that FTM might be at the start of a new era of growth. This could be a pivotal moment for holders who have waited patiently through periods of accumulation and consolidation.

As always in the world of cryptocurrency, risks remain, and price volatility is an ever-present factor. However, for those willing to stay the course, the coming weeks may provide substantial opportunities. Should the current uptrend continue, the possibility of reaching $1 and beyond becomes increasingly likely, potentially putting more holders in the money and sparking even greater interest in the Fantom network.

Investors and enthusiasts alike will be watching closely, as the next phase of Fantom’s journey unfolds. With a solid foundation of technical strength and growing interest, FTM's future looks bright, and for many, the wait might finally be worth it.

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Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.