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Fantom’s (FTM) 9% price surge in the last 24 hours has positioned it as the top performer among the top 100 cryptocurrencies by market capitalization. This rally is not fueled by speculation alone — it is backed by strong demand, evidenced by a sharp rise in trading volume.
On-chain metrics and technical analysis suggest that FTM could be on track for an additional 13% price increase. This analysis delves into whether such a target is achievable.
Fantom’s Sonic Upgrade Is the Talk Of the Town
As of press time, FTM is trading at $0.56, a price it last reached on July 2. The ongoing rally is fueled by strong demand, reflected in its trading volume, which soared to a 30-day high.
Additionally, FTM’s weighted sentiment, which reflects the market’s mood regarding an asset, has surged to its highest levels since March 2023. At present, FTM’s weighted sentiment sits at 5.69, indicating that social media discussions around the altcoin are mostly positive.
The discussions are likely centered around Fantom’s Sonic upgrade, which is expected to launch on the mainnet in November. This upgrade will enhance the network’s performance by introducing a new Fantom Virtual Machine (FVM), an optimized Lachesis consensus mechanism, and the Carmen database storage system.
Read more: 9 Best Fantom (FTM) Wallets in 2024
These improvements will allow Fantom to process over 2,000 transactions per second (TPS) with a finality time of approximately one second, compared to its current 30 TPS.
Since the Sonic testnet went live on September 6, there has been a notable increase in whale activity. According to Santiment, the number of whale addresses holding between 1,000,000 and 10,000,000 FTM coins has grown by 5%, signaling that large holders are accumulating ahead of the mainnet launch.
FTM Price Prediction: 13% Rally Is Possible
FTM’s rising Relative Strength Index (RSI), currently at 67.50, signals ongoing demand for the altcoin, indicating that buying pressure is outweighing selling activity. This level suggests that the market is approaching overbought conditions, which typically reflect strong demand.
Additionally, the coin’s Elder-Ray Index, a measure of the balance between buyers’ and sellers’ market strength, is positive at 0.12, reinforcing the bullish momentum. A positive reading indicates that buyers are dominating, which aligns with the current price action.
If these bullish trends persist, Fantom’s price could increase by an additional 13%, reaching $0.63, a key resistance level from April. Surpassing this level could push FTM to target the next resistance at $0.85.
Read more: Fantom (FTM) Price Prediction 2024/2025/2030
However, if profit-taking activity increases, Fantom’s price might decline to the August 5 low of $0.25, invalidating the bullish outlook.