Fantom [FTM] has outperformed most of the altcoins with a 20% increase in the past 30 days, with a trading price of $0.742 at the time of writing.
Despite the gradual upward trend of FTM, there are no signs of weakness. According to data from CoinMarketCap, its trading volume has increased by about 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 buying and selling addresses that account for about 1% of the total circulating supply. When the net flow is positive, it indicates that whales are buying more tokens than selling, usually indicating a price increase.
Conversely, a decrease in this indicator indicates that more tokens are being sold than bought, which usually 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. An analysis of token holding time shows a significant increase in the holding time in the past seven days. Holding time refers to the time a token is held without being 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 their assets, which could exert upward pressure on the price if this behavior continues.
Meanwhile, net outflows from exchanges indicate that traders are withdrawing their FTM tokens from exchanges. In the past two days, the net outflow from FTM exchanges has mainly been negative, which could alleviate selling pressure.
The negative net outflow provides room for FTM to expand its rally, 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) has crossed above the 200-day SMA, indicating a strengthening short-term momentum.
The strength of the golden cross is also reflected in the steadily rising On-Balance Volume (OBV) indicator, which indicates increasing buying activity, essential for maintaining an upward trend.
After forming the golden cross, FTM attempted to continue its rally but encountered resistance 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, as funding rates have reached the highest level in over a week. This indicates that more traders are going long on FTM.
This surge indicates positive sentiment towards the token, as bullish traders are willing to pay higher fees to maintain their long positions.
FTM price prediction: Target close to $1
On the daily chart, FTM reached $0.76 with support at the $0.70 level. However, bears prevented the price from breaking above the resistance level at $0.88. Although a slight pullback has occurred, the likelihood of a significant pullback is low.
This view is supported by the Chaikin Money Flow (CMF) indicator, which tracks accumulation and distribution. A decline in CMF indicates severe distribution, which could lead to a price decrease. In the case of Fantom, CMF has been steadily rising, indicating ongoing accumulation.
If this trend continues, FTM could rise by 25% to reach $0.95 in the short term. However, if the price falls below the support level of $0.70, it could trigger a deeper pullback to $0.63.
In summary, Fantom has formed a golden cross, with the 50-day moving average (SMA) crossing above the 200-day SMA. The significant increase in trading volume from 3 million to a record high of 201 million indicates that the market’s positive sentiment is continuing, and another surge is expected. However, it is worth noting that there may be further volatility in the market in the near future. A pullback could be healthy, and short-term traders should pay attention to fluctuations and take timely profit and stop-loss measures, while long-term investors can wait patiently for opportunities.