Fantom On “Everyone’s Watchlist?” Analyst Explains Why

Fantom (FTM) has been receiving a lot of attention from investors and some analysts have claimed that this is the right time to buy more. The cryptocurrency has recently seen some gains in its price, having increased by almost 15% in the last day, attracting interest.

This price action has made FTM one of the most observed Layer 1 assets, with many expecting it to start a major move soon. Industry analysts pay special attention to the recent FTM price jump. This has been fueled by the anticipation of the token’s move to Sonic.

According to a well-known analyst, it is also possible that investors may have one more chance to join the market at the $0.40 level, as it is usually seen at the level before a price rally that can reach a higher level can begin.

As of now, the market capitalization has reached almost $1.8 billion. There is an increasing belief that the prevailing market environment could open up a huge upside for FTM.

Everyone is looking at $FTM with $S on the horizon.

I think you’ll have another chance to get in the $0.40 ish area before it takes off, so, if you’re not allocated, you might get that lucky entry.

It’s on everyone’s watchlist at this point.

After being called crazy for being…

— hoeem (@crypthoem) September 18, 2024

The analyst also touched on the sentiment of the Fantom community. This has remained bullish concerning the asset even when other market participants were bearish. Some of the early adopters have started realising the value that they are getting from the technology as the focus has shifted to the technological aspect of FTM.

With the increased competition in the Layer 1 blockchain, particularly with Solana, the Fantom ecosystem is bullish on the future of the platform.

FTM Shows Strong Performance Amid Market Volatility

Today’s market situation shows that FTM costs $0.641, reflecting a 12.27% rise compared to the previous 24 hours. This trend has been coupled with a significant rise in trading volume, which has increased by 67. 81% to $397 million. Such a spike in the trading volume indicates that more and more investors are gaining confidence in FTM and are willing to trade it more often.

When writing this article, the market capitalization for the coin is around $1.8 billion. This puts it in position 47 among all the cryptocurrencies. Fantom’s fully diluted market cap now stands at over $2 billion. This has been in light of the recent price movement.

This shows that Fantom can displace its rivals as it continues to grow its ecosystem and increase its possible uses. As can be seen from the price chart, it has been a relatively strong day for FTM. The cryptocurrency rose from an opening price of $0.57 to current levels.

This steady increase has supported analysts’ bullish view of the asset. Expectations of its transition to Sonic partly drive this. The migration will improve Fantom’s scalability and user experience, strengthening the Layer 1 ecosystem.

Technical Analysis Points to Further Upside Potential

An in-depth analysis shows a clear bullish trend as the price has steadily increased, currently trading around $0.63. The price has traded above key moving averages (50-SMA, 100-SMA, and 200-SMA), signalling bullish momentum.

The 50-SMA, currently at $0.5244, acts as immediate support, while the 100-SMA and 200-SMA, positioned at $0.4703 and $0.4546, respectively, provide deeper support levels that could cushion the price in case of further corrections.

The recent price action above the key moving averages suggests buyers remain in control. However, if FTM dips below the 50-SMA, it may test the 100-SMA or 200-SMA, which could act as significant support zones and possible entry points for buyers looking to accumulate.

4-hour FTM/USDT Chart | Source: TradingView

On the other hand, we see that the Relative Strength Index (RSI) on the 4-hour chart is currently at 72.72, placing it in the overbought territory. This suggests that the asset has been aggressively bought recently, and a short-term correction or consolidation could be on the horizon as traders look to take profits. The RSI crossed above 70 during the latest surge, signaling bullish solid momentum.

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