Fantom (FTM), Price Rises by 15%, Is a Breakout to $1 Possible?

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The overall market has been showing signs that it is weakening as Bitcoin (BTC), which was retested at $21K several times, and altcoins seem to be trying to stay above their immediate support levels. The price of Fantom tokens (FTM), however, has been on a rollercoaster ride over the past few weeks due to the recent distribution and unlocking of approximately 246 million FTM tokens.
Price Surge for Fantom (FTM).
FTM saw an unexpected increase of over 13%, as investors waited for U.S. CPI data for January. Ali, a prominent crypto analyst, stated that the cryptocurrency has overcome a significant supply obstacle and is now supporting it. He also stated that FTM is expected to move up in price because there are no significant resistance obstacles ahead of it, as indicated by a number on-chain indicators.

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#Fantom overcame an important supply wall and turned it into support. Notice @intotheblock doesn’t show any other important resistance barriers before $FTM. This could indicate that #FTM is on the cusp of a major upswing. pic.twitter.com/dvMgXgmkPn
— Ali (@ali_charts), February 14, 2023

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A deeper analysis of the data reveals that Fantom was trading between large supply walls. The first was used to support the initial 783,000,000 FTM. 10,000 addresses purchased FTM between $0.25- $0.38. The second barrier was resistance at $0.43 to $0.49 where approximately 3,000 addresses bought 656 million FTM. Fantom is using this support as a barrier to break the second supply wall, and FTM could see a positive breakout. FTM could reach $0.60, or even close to the $1 price mark, if the market turns strongly bullish.
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Fantom Network Activity Spikes

FTM’s recent 13% price increase follows a spike of network activity, which Ali pointed out earlier today. On-chain data showed a huge increase in the number FTM tokens being traded. This coincided with the 8.83 million tokens entering cryptocurrency markets and a 7.04million FTM increase in exchange supply.

Santiment’s data on-chain has shown that addresses with 10,000 to 10,000,000 FTM have sold or redistributed more than 246 million FTM tokens over the past week. This resulted in a value $113.2 million. It caused a significant price correction that saw the altcoin’s value fall from $0.60 to $0.41. This equates to a 32% retracement.

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However, Fantom’s price is currently at $0.51. This represents a 15% increase over the past 24 hour, compared to the 7.8% drop over the last seven. FTM’s technical analysis indicators (TA) at CoinGape’s Price Tracker recommend a buying opportunity. The moving averages, which indicate a “buy” at 14 levels and a “sell” at 3, suggest a buy at 3.
Also read: Are these tokens the future of crypto gaming in 2023?

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The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.

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