The overall market has been showing signs of weakness as the price of Bitcoin (BTC) retested the $21K level several times, while altcoins appear to be fighting to stay above their immediate support levels. However, the price of Fantom (FTM) is witnessing a roller coaster ride for the past few weeks amidst the recent unlocking and distribution of roughly 246 million FTM tokens.
Fantom (FTM) Price Surge
In a rather sudden move, FTM had an unexpected increase of more than 13% as investors awaited the publication of U.S. CPI data for the month of January. According to a prominent crypto analyst Ali, a significant supply hurdle was recently overcome by the cryptocurrency, which has now turned into its support. He further opines that, since there are no other significant resistance hurdles ahead — as indicated by a number of on-chain indicators — an upward price movement can be expected from FTM.
#Fantom overcame a significant supply wall, turning it into support. Notice that @intotheblock shows no other important resistance barriers ahead of $FTM, which may suggest #FTM is preparing for an important upswing. pic.twitter.com/dvMgXgmkPn
— Ali (@ali_charts) February 14, 2023
It becomes clear from a deeper examination of the data that Fantom was trading between two big supply walls. The first served as support for the initial 783 million FTM, which 10,000 addresses bought between $0.25 and $0.38. The second barrier was resistance at the price point between $0.43 and $0.49, where about 3,000 addresses purchased 656 million FTM. However, with this second supply wall being broken & Fantom using it as a support, a positive breakout for FTM could be anticipated — with a potential price of $0.60 or perhaps close to the coveted $1 price mark if the broader market turns severely bullish.
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Fantom Network Activity Spikes
FTM’s recent 13% price hike, comes following a spike in network activity which was pointed out by Ali earlier today. On-chain data revealed a massive surge in the number of FTM tokens changing hands. This also coincided with the wave of 8.83 million tokens entering the cryptocurrency market as well as a 7.04 million FTM rise in the supply of exchanges.
Santiment’s on-chain data has shown that addresses holding between 10,000 and 10,000,000 FTM have disposed of or redistributed over 246 million FTM tokens in the past week, resulting in a value of $113.2 million. Following the sharp increase in selling pressure, it triggered a significant price correction, which resulted in the altcoin’s price falling from a high of $0.60 to a low of $0.41, which equates to a retracement of 32%.
Nonetheless, as things stand, the price of Fantom (FTM) is currently trading at $0.51 which represents an increase of 15% over the past 24 hours, in contrast to a drop of 7.8% over the last seven days. It should be noted that FTM’s technical analysis (TA) indicators at CoinGape’s price tracker recommend a buying opportunity as summarised by the moving averages, which suggest a “buy” at 14 and “sell” at a level 3.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/fantom-ftm-price-hit-1-massive-breakout/