beincrypto.com
On-chain analysis shows that the cryptocurrency Fantom (FTM) has been experiencing a significant surge in trading activity.
There has been a notable increase in the number of FTM tokens flowing into crypto exchanges over the past week. Interestingly, Fantom recently breached a critical supply wall that may trigger a new uptrend.
Fantom Network Activity Spikes
On-chain data from Santiment has revealed that addresses holding between 10,000 and 10,000,000 FTM have sold or redistributed over 246 million FTM tokens in the past week, worth $113.2 million. The spike in selling pressure was succeeded by an important price correction that saw the altcoin go from a high of $0.60 to a low of $0.41, representing a 32% retracement.
As addresses offloaded 246 million FTM, there was a significant increase in idle FTM tokens exchanging hands. Idle tokens are those that have been sitting in wallets without being moved or sold, and the sudden movement of these tokens suggests that investors are actively trading FTM.
Indeed, more than 8.80 million FTM tokens were sent to trading platforms on February 11, increasing the total supply on crypto exchanges by 7.04 million tokens.
FTM Price Prediction
A closer look at the data reveals that Fantom was trading between two significant supply walls. The first acted as support between $0.25 and $0.38, where approximately 10,000 addresses purchased around 783 million FTM. The second wall was the resistance between $0.43 and $0.49, where around 3,000 addresses bought approximately 656 million FTM.
Nonetheless, this second supply wall was breached, and Fantom is now attempting to turn it into support. If this effort is successful, it could trigger a bullish breakout for the altcoin, with FTM price potentially reaching $0.54 or even $0.60.
It is worth noting that, as with all cryptos, a degree of risk is involved in investing in Fantom. Failing to hold above the $0.43 – $0.49 support level may generate panic among investors. The sentiment shift could result in a sell-off that sends the FTM price to $0.38.
The recent surge in trading activity for Fantom highlights the potential of this crypto. Still, investors should conduct their own research and carefully consider their investment strategy before investing in any crypto.