Fantom [FTM] crypto price prediction: $1.6 price target in sight

During mid-December, Fantom [FTM] experienced a significant surge of 16% as it prepared for a major overhaul and transition to Sonic [S]. This upgrade aims to enhance the speed, affordability, and user-friendliness of the L1 blockchain. These improvements are intended to bolster Fantom’s competitiveness against notable rivals such as Solana [SOL], Ethereum [ETH], and Avalanche [AVAX]. Furthermore, the rebranding of the token to Sonic [S] on a 1:1 swap basis with FTM is expected to help maintain its value. Will this fresh narrative contribute to a spike in the token’s valuation?

A Glimpse into Fantom [FTM] Crypto Price Trends

An analysis of the 3-day chart unveils that FTM successfully defended the key support level at the March highs of $1.2, indicating a bullish market structure. This solid performance could embolden bullish investors to set their sights on reaching price targets of $1.6 or even $2.38. The Relative Strength Index (RSI) has breached into the overbought territory, reflecting robust demand for FTM in recent days. Moreover, the positive cash flows depicted by the Chaikin Money Flow (CMF) also suggest a steady demand for FTM. If $1.6 can be turned into a support level, the chances of FTM making significant strides prior to the upgrade are heightened.

Interpreting Diverse Signals from Major Whales

Over the past ten trading sessions, whales holding 10M-100M FTM tokens have accumulated an additional 24M tokens, indicating a bullish sentiment within this whale group. On the contrary, whales holding 1M-10M tokens have been observed selling off their holdings. Notably, wallets belonging to the 10M-100M FTM whale category collectively possess nearly 500M tokens, twice the amount owned by the 1M-10M whale wallets. This significant accumulation by the dominant whale segment signals a positive outlook for the token.

Additionally, the liquidation heatmap displays substantial short liquidations at $1.5 and long liquidations at $1.38. Typically, price action aligns with liquidity patterns. Therefore, a scenario where FTM’s price interacts with both liquidity zones may unfold. To surpass the obstacle at $1.6, a potential short squeeze beyond $1.5 might be necessary.

Disclaimer: This content serves as personal opinion and not as professional financial, investment, or trading advice.