Over the past few weeks, Fantom [FTM] has seen a consistent upward trend, with a 30-day increase of over 50%. Currently, FTM is trading at $0.76, following a 9% upsurge within 24 hours.
While positive market sentiment in the wider cryptocurrency space has supported this upward movement, two additional factors have contributed to the rally.
Rise in Short Squeeze Activities
The recent gains in Fantom led to losses for short sellers, as short liquidations surpassed $1 million in a single day. This marked the second highest level of short liquidations for this month.
When an asset’s price surges into a short liquidation zone, short traders are compelled to purchase the token to close their positions. This uptick in buying pressure fueled the rise in FTM.
The liquidation heatmap for FTM indicated a significant liquidation area between $0.76 and $0.78. As the price climbed and hit these thresholds, forced buying by short sellers generated upward momentum.
Significant Surge in Large Transactions by 1,000%
The spike in whale activity has also propelled Fantom’s gains to a monthly peak. Data from IntoTheBlock revealed that transactions above $100,000 surged from 4.38 million to 50.78 million, marking a 1,000% increase.
This notable increase in large transactions coincided with a rise in price, indicating that whales likely engaged in FTM purchases, further boosting the recent upswing.
It is worth noting that whales currently possess 73% of the total FTM supply. Thus, a surge in substantial transactions could potentially instigate price fluctuations.
Is $1 Achievable for FTM?
The momentum of FTM bulls strengthened after the 50-day Simple Moving Average (SMA) crossed over the 150-day SMA earlier this week. This crossover aligned with a surge in buying volumes, as illustrated by the volume histogram.
The 50-day SMA is trending upwards towards the 200-day SMA, and crossing above it would result in a golden cross for Fantom, heightening bullish sentiment.
With the Relative Strength Index (RSI) at 64, indicating a greater presence of buyers over sellers, the bullish momentum appears robust.
If the current buying pressure persists and FTM maintains levels above $0.76, the next significant resistance level looms beyond $1.
One potential catalyst for this substantial price movement is the spike in open interest. FTM’s open interest surged by 19% to $243 million, its highest point since May, at present.