Fantom (FTM) has shown recovery after a recent drop that caused substantial losses for holders. Many investors chose to hedge their holdings, contributing to the decline.
However, this losing streak may soon come to an end as Fantom regains momentum, bringing optimism back into the market.
Fantom investors are skeptical
This week, FTM supply on exchanges increased sharply, with 37 million tokens transferred in 48 hours. Investors sold their holdings to lock in $31 million in profits, reflecting concerns about the altcoin’s stagnant uptrend. Such moves usually indicate waning confidence in a cryptocurrency’s short-term prospects.
The lack of sustained upward momentum has left many investors worried about further losses. Fears of disappearing profits have led holders to dump their tokens, amplifying selling pressure. However, the recent price surge could help mitigate these concerns, potentially stabilizing market sentiment for FTM.
Fantom Offering on Exchanges. Source: Santiment
Profitability data from active addresses reveals that only 10% of FTM investors are currently in profit. This is the lowest level for this group, suggesting a slowdown in selling activity. Historically, when profitability is this low, fewer investors are inclined to sell, reducing downward pressure on the price.
The slowdown in selling could support Fantom’s recovery. With fewer holders liquidating their positions, the altcoin has a better chance of maintaining its recent gains and building on its upward trajectory. This dynamic could help FTM reclaim crucial price levels in the coming weeks.
Fantom Active Addresses by Profitability. Source: IntoTheBlock
FTM Price Prediction: Targeting $1
Fantom price has surged 23.88% in the past 24 hours, pushing the altcoin above the $0.83 resistance level. Furthermore, trading at $0.84, FTM is now focused on securing this high and maintaining its bullish momentum. Holding above this level is crucial to maintain market optimism.
However, if FTM manages to recover from the $0.83 support level, it could continue its uptrend. This would allow the altcoin to recover the 52% losses incurred during the second half of December. Reclaiming $1.03 as support would mark a significant milestone, restoring investor confidence and signaling potential for further growth.
Fantom Price Analysis. Source: TradingView
However, failure to hold above $0.83 could result in a pullback to $0.76, invalidating the bullish outlook. Furthermore, this scenario would erase some of the recent gains, leaving Fantom vulnerable to a deeper decline towards $0.66. Sustained momentum is critical to avoid further setbacks.
The article Fantom Surges 23% in One Day After Selling Pressure Ceases appeared first on BeInCrypto.