Fantom’s Large Investors Engage in Aggressive Trading – Will FTM Experience a 20% Surge?
Over the past month, Fantom [FTM] has displayed a remarkable performance compared to other alternative cryptocurrencies, registering a 20% increase and currently trading at $0.755.
Despite the gradual uptick in its performance, FTM appears to have more room to grow, as evidenced by a substantial 140% surge in trading volumes, as reported by CoinMarketCap.
Simultaneously, a surge in whale activity has been observed, with transaction volumes involving FTM amounts exceeding $100,000 spiking from 3 million to 201 million within a 24-hour span, according to data from IntoTheBlock.
These substantial transaction volumes, the highest recorded in a year, signal heightened involvement of Fantom’s major investors following recent price hikes.
It is notable that whales currently hold 73% of the total Fantom supply. Therefore, the recent uptick in significant transaction volumes could potentially trigger notable price movements for FTM in the near future.
Additionally, data on exchange netflows reveals that traders are withdrawing their FTM holdings from exchanges. Over the past couple of days, FTM exchange netflows have been predominantly negative, suggesting a potential alleviation of selling pressure.
The negative exchange netflows create space for FTM to further expand its gains, indicating that traders are more inclined towards holding rather than selling for profits.
Fantom Witnesses a Bullish Trend Reversal
Following the formation of a golden cross pattern on the daily chart, Fantom’s bullish trend appears set to continue.
Recent data indicates that the 50-day Simple Moving Average (SMA) has crossed above the 200-day SMA, signaling an uptick in short-term momentum.
Further strengthening this bullish reversal is the on-balance volume (OBV) indicator, which has been on an upward trajectory, reflecting a gradual rise in buying activity crucial for sustaining the ongoing rally.
Post the golden cross formation, FTM made an attempt to push further but faced a resistance level at $0.797. A breakthrough at this point could potentially lead to a 20% rally towards the 1.618 Fibonacci level at $0.902.
However, failure to breach this resistance level could see FTM retracing towards the $0.732 support zone, especially if buyers show reluctance at the current price levels.
Market data from Coinglass indicates an optimistic outlook, with a rise in Funding Rates to the highest level in over a week, suggesting an upsurge in long positions on FTM.
This surge in funding rates shows a positive investor sentiment towards the token, as long traders are willing to pay a premium to maintain their bullish positions.