- Fantom has formed a golden cross, with the 50-day SMA crossing above the 200-day SMA.
- Large transaction volumes have also increased from 3M to a yearly high of 201M.
Fantom [FTM] has outperformed most altcoins with its 20% gains within 30 days to trade at $0.755 at press time.
Despite the gradual uptrend, FTM is not showing signs of exhaustion, given that trading volumes have increased by around 140% according to CoinMarketCap.
The spike in trading volumes coincided with rising whale activity. Per IntoTheBlock, trading volumes for FTM transactions exceeding $100,000 have increased from 3M to 201M within 24 hours.
These large transaction volumes are at the highest level in one year, suggesting that Fantom whales have become active after the recent gains.
Source: IntoTheBlock
Whales control 73% of the Fantom supply. Therefore, with the recent surge in large transaction volumes, FTM could be set for significant price moves.
At the same time, exchange netflows show that traders are withdrawing their FTM tokens from exchanges. In the last two days, FTM exchange netflows have been predominantly negative, which could ease the selling pressure.
Source: IntoTheBlock
Negative exchange netflows give room for FTM to extend its gains as it shows traders are not keen on booking profits.
Fantom forms a golden cross
The bullish trend is showing signs of continuation after Fantom formed a golden cross on the one-day chart.
The 50-day Simple Moving Average (SMA) crossed above the 200-day SMA showing that the short-term momentum is gaining strength.
The strength of this golden cross is further seen in the on-balance volume (OBV) indicator that has been trending upwards. This shows a gradual increase in buying activity, which is needed to sustain the rally.
Source: TradingView
After forming the golden cross, FTM attempted to extend its gains but encountered resistance again at $0.797. If the price breaks above this level, FTM could make a 20% rally to the 1.618 Fibonacci level ($0.902).
On the other hand, FTM could drop to test support at $0.732 if buyers are hesitant to enter at the current price and the crossover fails.
Read Fantom’s [FTM] Price Prediction 2024 – 2025
Data from Coinglass shows that traders are betting on a bullish continuation after Funding Rates increased to the highest level in over a week. This indicates that more traders are taking long positions on FTM.
Source: Coinglass
This spike shows that there is a positive sentiment around the token because long traders are willing to pay more to sustain their long positions.
