Fantom (FTM) is making headlines in the cryptocurrency market as whale activity reaches its highest level in a year. This spike in large transactions, coupled with bullish technical indicators, has led to discussions about whether FTM is positioned for a significant price rally, potentially rising by 20%.

Recent Market Trends

Fantom has recently formed a “golden cross,” a technical pattern that occurs when the 50-day Simple Moving Average (SMA) crosses above the 200-day SMA. This crossover is often interpreted as a bullish signal, indicating that short-term momentum is gaining traction. Currently, FTM is trading at approximately $0.755, having gained 20% over the past 30 days, showcasing its resilience in the altcoin market.

One of the most noteworthy developments is the sharp increase in trading volumes. According to Coin Market Cap, trading volumes have surged by about 140%. Specifically, transactions exceeding $100,000 have jumped from 3 million to an impressive 201 million within just 24 hours. This significant uptick indicates heightened activity among whales, suggesting that large holders are re-engaging with the market.

Whale Activity and Market Sentiment

Whales, or large cryptocurrency holders, currently control about 73% of the total Fantom supply. This concentration means that their trading activity can substantially influence market movements. The recent increase in large transaction volumes points to potential price volatility, as these large holders may be preparing for significant trades.

Additionally, data on exchange net flows reveals a notable trend: over the past two days, traders have been withdrawing FTM tokens from exchanges, resulting in predominantly negative net flows. This behavior is generally seen as a bullish sign, indicating that traders are not looking to sell but rather to accumulate or hold their assets. The reduction in available supply on exchanges could alleviate selling pressure and allow FTM to extend its gains.

Technical Indicators Favor a Rally

The formation of the golden cross is not the only bullish signal for FTM. The on-balance volume (OBV) indicator, which measures buying and selling pressure, has also shown an upward trend. This increase in OBV reflects growing buying interest, which is crucial for sustaining any upward momentum.

Despite this positive outlook, FTM has encountered resistance at the $0.797 level. If the price can successfully break through this barrier, analysts believe FTM could rally up to the 1.618 Fibonacci level at $0.902, representing a potential 20% increase. On the flip side, if buyer interest begins to fade, FTM might test support at $0.732.

Increased Funding Rates Indicate Bullish Sentiment

Recent data from Coin glass highlights another bullish trend: funding rates for Fantom have risen to their highest level in over a week. This increase suggests that more traders are taking long positions on FTM, reinforcing the positive sentiment surrounding the token. Traders willing to pay higher funding rates typically reflect confidence in potential price increases, indicating that market sentiment is leaning towards bullishness.

Conclusion

Fantom’s recent surge in whale activity, combined with promising technical indicators and increased trading volumes, points to a potentially bullish future for FTM. The golden cross formation and negative exchange net flows suggest that selling pressure is diminishing, which could pave the way for a 20% rally.

As the market evolves, traders and investors should closely monitor these developments to assess the potential for further gains in Fantom’s price. The next few days will be critical in determining whether FTM can break through key resistance levels and maintain its current momentum. With the backing of whale activity and positive market sentiment, Fantom may be on the brink of an exciting price journey.