Fantom (FTM) Price Surges By 15%, Is A Breakout To $1 Possible?

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.

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.

Read More: Check Out The Top 10 DeFi Lending Platforms Of 2023

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.

Also Read: Are These Tokens The Future of Crypto Gaming In 2023?