Fantom, a popular blockchain platform known for its speed and low transaction costs, has experienced a mixed performance this year. While other major altcoins like Solana and Toncoin have surged by over 100%, FTM has seen a more modest increase of around 40% year-to-date. Recently, FTM has faced some downward pressure, declining by approximately 5.7% in the past day to its current price of $0.3393.

Despite this recent dip, Fantom’s performance over the past week has been notable. The cryptocurrency climbed over 15% and briefly surpassed the $0.36 mark on August 11, showing resilience and potential for recovery.

Technical Analysis: Hidden Bullish Divergence

Analyst Javon Marks has identified a key technical signal that could indicate significant future gains for FTM. According to Marks, Fantom is exhibiting a “Hidden Bullish Divergence” on its charts. This technical pattern often signals the potential for upward price movement, even when short-term price action appears bearish.

What is Hidden Bullish Divergence?

Hidden Bullish Divergence occurs when the price of an asset records a higher low while the oscillator (a technical indicator measuring momentum) shows a lower low. This discrepancy between price action and momentum can indicate that the underlying bullish sentiment is still strong, despite recent price declines. Essentially, it suggests that the asset could be poised for a significant upward trajectory.

Marks speculates that this pattern could lead to a dramatic price increase for FTM. He predicts that Fantom could see a surge of up to 234%, potentially pushing the cryptocurrency to the $3 mark. This optimistic forecast is based on historical patterns where similar technical setups have preceded substantial price recoveries.

Recent Price Activity and Volatility

Fantom’s recent price activity supports the idea of a potential rebound. The cryptocurrency has demonstrated volatility, which, while risky, also presents opportunities for substantial gains. Marks points out that previous instances of retracement followed by similar patterns have led to major rallies. This historical context adds weight to the current bullish outlook for FTM.

Marks shared his insights on X (formerly Twitter), stating:

“Fantom’s recent confirmation of a Hidden Bullish Divergence, although followed by a retracement, aligns with previous patterns that preceded major price recoveries.”

According to Marks, this setup suggests that FTM could target a long-term price of $3.0053, a significant breakout level for the cryptocurrency.

Fundamental Factors Influencing FTM

While technical analysis provides valuable insights, it’s also important to consider the fundamental factors affecting Fantom. These include whale activity and open interest in derivatives, both of which can provide clues about market sentiment and potential future movements.

Whale Transactions

Whale transactions, or large transactions conducted by major investors, can be a strong indicator of market trends. Recently, the number of significant whale transactions involving FTM has decreased from over 20 last week to just 6 this week. This drop could suggest a temporary reduction in investor confidence or a consolidation phase before a potential rally.

Open Interest Trends

Open interest refers to the total number of outstanding derivative contracts, such as futures, that have not been settled. The open interest for FTM has shown mixed trends recently. While there has been a 9.2% decrease in open interest, indicating a cooling off from leveraged positions, there has also been a notable 47.59% increase in open interest volume. This rise suggests that new money might be entering the market, potentially in anticipation of future price increases.

Investment Considerations

For investors looking to add Fantom to their portfolio, it’s essential to weigh both the technical and fundamental factors. The Hidden Bullish Divergence pattern suggests significant upside potential, but the current market conditions and whale activity also play a critical role in shaping FTM’s future performance.

Investors should monitor key levels and market trends closely. The combination of technical signals and fundamental indicators provides a comprehensive view of the potential risks and rewards associated with FTM.

What to Watch For:

1. Technical Signals: Keep an eye on the Hidden Bullish Divergence and other technical indicators to gauge potential price movements.
2. Market Sentiment: Watch for changes in whale activity and open interest, which can provide insights into investor confidence and future trends.
3. Price Levels: Monitor critical support and resistance levels, including the potential target of $3, to assess entry and exit points.

Conclusion

Fantom (FTM) presents an intriguing opportunity for investors, given its current technical and fundamental indicators. While the cryptocurrency has faced some short-term challenges, the potential for a significant price surge makes it a noteworthy asset to watch. The Hidden Bullish Divergence pattern, combined with recent price activity and fundamental factors, suggests that FTM could be on the verge of a substantial rally.