Fantom’s native token, FTM, has been outperforming many other altcoins, boasting a 20% increase over the past month to reach $0.755 at the current moment.
Despite this steady upward movement, FTM does not appear to be losing steam, especially as trading volumes have surged by approximately 140%, as reported by CoinMarketCap.
The surge in trading volumes correlates with a rise in whale activity. Data from IntoTheBlock illustrates a significant spike in FTM transactions exceeding $100,000, soaring from 3 million to 201 million within a mere 24-hour period.
These substantial transaction figures mark a one-year high, indicating heightened activity among Fantom’s large investors following recent price gains.
Comprising 73% of the total Fantom token supply, whales could potentially influence substantial price movements due to the recent surge in large transactions.
Simultaneously, exchange netflows data reveals that traders are moving their FTM holdings off exchanges. Over the past two days, FTM exchange netflows have predominantly shown negative values, potentially reducing the selling pressure on the token.
The negative exchange netflows could pave the way for FTM to continue its upward trajectory, as they suggest that traders are less inclined to cash out their profits at the moment.
Fantom Sees a Golden Cross Formation
The bullish momentum appears poised to persist as Fantom establishes a golden cross pattern on the daily chart.
With the 50-day Simple Moving Average (SMA) crossing above the 200-day SMA, the short-term momentum appears to be gaining traction.
This strength in the golden cross formation is evident in the on-balance volume (OBV) indicator, which displays an upward trend, signaling a gradual rise in buying activity crucial for sustaining the price rally.
Following the golden cross formation, FTM made a push to extend its gains but encountered resistance around the $0.797 mark. A breakthrough above this level could propel FTM to rally by 20% towards the 1.618 Fibonacci level at $0.902.
Alternatively, should buyers hesitate to enter the market at the current price and the crossover fails, FTM might retract to test support around $0.732.
Market data from Coinglass indicates traders are favoring a bullish continuation, evident through increased Funding Rates reaching their highest level in more than a week. This surge suggests growing bullish sentiment around FTM, with more traders opting for long positions on the token.
Overall, the spike in Funding Rates indicates positive market sentiment, as long traders are willing to pay higher fees to maintain their long positions on FTM.