Fantom [FTM] has outperformed most altcoins, with a 20% increase in the past 30 days, trading at $0.742 at the time of writing.
Despite showing a gradual upward trend, FTM has not shown any signs of weakness. According to data from CoinMarketCap, its trading volume has increased by approximately 140%.
Fantom whales snatch up 210 million tokens
Initially, on October 19, the net flow was negative, indicating that whales were selling more FTM than buying. However, as of now, the net flow has risen to 201 million, indicating a change in sentiment and possibly a bullish signal.
The net flow of large holders tracks the activity of addresses that account for about 1% of the total circulation. When the net flow is positive, it indicates that whales are buying more tokens than selling, usually signaling a price increase.
Conversely, a decline in this indicator indicates that more tokens are being sold than bought, which typically leads to a price decrease. Therefore, the recent positive net flow suggests that whales have accumulated approximately $160 million worth of FTM at the current price.
However, cryptocurrency whales are not the only ones expressing a bullish outlook. Analysis of token holding time shows a significant increase in holding time over the past seven days. Holding time refers to the time when tokens are held and not traded or sold.
A decrease in holding time indicates that holders are selling. In contrast, the current trend suggests that multiple FTM addresses are holding onto their assets, which may exert upward pressure on the price if this behavior continues.
At the same time, net outflows from exchanges indicate that traders are withdrawing their FTM tokens from exchanges. In the past two days, FTM exchange net outflows have mainly been negative, which may alleviate selling pressure.
The negative net outflow provides room for FTM to expand its gains, as it indicates that traders are not eager to take profits.
Fantom forms a golden cross
After forming a golden cross on the daily chart, the bullish trend shows signs of continuation.
The 50-day simple moving average (SMA) crossing above the 200-day SMA indicates that the short-term momentum is strengthening.
The strength of the golden cross is also reflected in the consistently rising On-Balance Volume (OBV) indicator. This indicates an increasing buying activity, which is necessary to sustain the upward momentum.
After forming the golden cross, FTM attempted to continue the uptrend but encountered resistance again at $0.797. If the price breaks above this level, FTM could rise by 20% to the 1.618 Fibonacci level ($0.902).
On the other hand, if buyers are unwilling to enter at the current price and the cross fails, FTM could fall to the support level of $0.732.
Data from Coinglass shows that traders are betting on the continuation of the bullish trend after funding rates reached their highest level in over a week. This indicates that more traders are going long on FTM.
This surge suggests positive sentiment towards the token, as long traders are willing to pay higher fees to maintain their long positions.
FTM price prediction: Target close to $1
On the daily chart, FTM touched $0.76, finding support at the $0.70 level. However, bears prevented the price from breaking above the resistance level at $0.88. Although there may be minor pullbacks, a significant retracement is unlikely.
This view is supported by the Chaikin Money Flow (CMF) indicator, which tracks accumulation and distribution. A declining CMF indicates severe distribution, which can lead to a price decline. In the case of Fantom, the CMF has been steadily rising, indicating ongoing accumulation.
If this trend continues, FTM could rise by 25% to $0.95 in the short term. However, if the price falls below the support level of $0.70, it could trigger a deeper retracement to $0.63.
In summary, Fantom has formed a golden cross, with the 50-day SMA crossing above the 200-day SMA. The significant increase in trading volume from 3 million to a yearly high of 201 million indicates the continuation of positive market sentiment and a potential surge. However, it is worth noting that the market has been volatile recently, and a retracement is expected. Nevertheless, personally, I believe a pullback would be healthier, and the bull market is likely to continue. For short-term trading, it is important to pay attention to fluctuations and take profit and stop loss in a timely manner, while for long-term trading, it is best to wait patiently.
