FTM is trading at approximately $0.76 after a robust 9% increase in just a single day. This upward momentum can be attributed to a combination of factors, including the liquidation of short sellers and a notable rise in transactions by whale investors.
One of the most significant contributors to Fantom’s recent gains has been the surge in short liquidations. In the past 24 hours alone, short liquidations have topped $1 million, marking a pivotal moment for traders who had bet against FTM. This figure represents the second-highest level of short liquidations for the month, highlighting the volatility that can accompany rapid price movements in the cryptocurrency market.
When the price of an asset like FTM rises and approaches a liquidation zone, traders who have taken short positions must buy back the asset to cover their losses. This creates additional buying pressure, further driving up the price. In Fantom’s case, data indicates that the critical liquidation zone lies between $0.76 and $0.78. As the price hit these levels, the forced buying by short sellers contributed significantly to the overall upward momentum.
In addition to short liquidations, whale activity has surged dramatically, playing a crucial role in driving FTM’s price to new monthly highs. Recent data from Into The Block reveals that transactions involving amounts exceeding $100,000 have surged, increasing by an astonishing 1,000%. This jump signifies a major influx of capital into Fantom, likely driven by large investors taking advantage of the current market dynamics.
Whales—investors who hold substantial amounts of a particular cryptocurrency—now control around 73% of the total FTM supply. As a result, any significant transactions from these large holders can lead to considerable price volatility. The recent spike in whale transactions suggests a bullish sentiment among these influential investors, which could have a lasting impact on FTM’s price trajectory.
With FTM gaining traction, many investors are eager to know if the cryptocurrency can sustain its momentum and possibly reach the coveted $1 mark. Recent technical indicators provide a promising outlook. Earlier this week, the 50-day Simple Moving Average (SMA) crossed above the 150-day SMA, a technical pattern often viewed as a bullish signal. If the 50-day SMA continues to rise and crosses above the 200-day SMA, this would create a “golden cross,” further enhancing bullish sentiment around FTM.
Additionally, the Relative Strength Index (RSI) is currently at 64, indicating that buying pressure is outpacing selling pressure. A higher RSI often signifies strong bullish momentum, suggesting that more investors are confident in FTM’s upward trajectory. If this buying pressure continues and FTM manages to hold above the $0.76 level, the next major resistance could be found just above $1.
Another factor contributing to Fantom’s positive outlook is the recent spike in open interest, which has increased by 19% to reach $243 million. This figure represents the highest open interest level for FTM since May. Open interest indicates the total value of contracts that are currently open in the market, and a rise in this metric typically signifies growing interest among traders. The increase suggests that more investors are entering the market, reflecting optimism about FTM’s future performance.
Fantom’s surge is occurring against the backdrop of a broader recovery in the cryptocurrency market. As interest in altcoins grows, many investors are looking for promising assets to diversify their portfolios. Fantom’s unique features, including its speed and scalability, have positioned it as an attractive option for those seeking to capitalize on the current market conditions.
Moreover, the growing enthusiasm for decentralized finance (DeFi) and blockchain technology can also be seen as a driving force behind Fantom’s recent success. The platform’s capacity for high transaction speeds and low fees makes it a competitive player in the DeFi space, attracting both retail and institutional investors.
In conclusion, Fantom is enjoying a significant rally fueled by a combination of short seller liquidations and increased whale activity. Technical indicators point toward a bullish outlook, and rising open interest further enhances the optimism surrounding FTM. As investors closely monitor the market dynamics, the question of whether Fantom can reach the $1 mark remains a hot topic. If the current trends persist, FTM may indeed find itself breaking through this crucial resistance level in the near future.
Get the latest Crypto & Blockchain News in your inbox.