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Fantom (FTM) has rebounded 36% since recording a local low of $0.33 on March 11. On-chain data shows that FTM has been attracting new demand. Is there a chance for this altcoin to break above $0.50 in the coming weeks?
New participants and investors are joining the Fantom Network, while long-term holders are taking bullish positions.
Fantom Long-Term Holders Are Growing Confident
Fantom is an alternative DeFi smart contract platform that aims to solve the blockchain trilemma using its unique directed acyclic graph (DAG) consensus algorithm. Its native coin, FTM, has made a 30% tear in the last two weeks after dropping below $0.35 in mid-March.
Following a profit-taking wave in February, long-term holders participants on the Fantom network appear to be taking on bullish positions again. According to on-chain data from Santiment, FTM Mean Coin Age has been on an uptrend recently.
As the red line below shows, FTM Mean Coin Age has increased from 19 to 47.35 between Feb. 12 and March 30.
The Mean Coin Age (90d) data tracks the average number of days FTM coins have stayed in their current address. An uptick in the mean coin age implies that long-term holders are growing increasingly confident of FTM’s fundamental value and future price prospects.
Also, the rising wave of new participants joining the Fantom network confirms the bullish stance. The number of new wallet addresses created on Fantom has increased considerably in March 2023, according to Santiment.
The chart below shows that the number of new FTM wallet addresses created grew from 46 on March 6 to 201 addresses as of March 30.
The growing network indicates that more people are adopting Fantom’s native DAG technology. This suggests that the blockchain is becoming more mainstream and has the potential for broader use cases.
Notably, when increasing network growth coincides with an accumulation trend among long-term holders, it often leads to heightened demand for the underlying cryptocurrency. FTM will likely experience a prolonged upswing if crypto investors perceive this as a unique buying opportunity.
FTM Price Prediction: $0.60 is a Viable target
The Global In/Out of Money (GIOM) data presented by IntoTheBlock provides a distribution of wallet addresses currently holding FTM based on their average purchase prices.
An in-depth analysis of Fantom GIOM data shows that FTM may hit a sell wall at $0.47, the maximum price that 3,800 addresses had paid for their 1 billion FTM coins. However, if FTM can break above $0.47, it could rally toward the next significant resistance zone at $0.60. Around that price, another 4,670 addresses had bought 75 million coins/
Still, the bears can invalidate this bullish stance if FTM slips below $0.40, where 1,500 addresses have purchased 55 million coins. If that happens, the Fantom native token could drop until it reaches $0.33. Around $0.33, however, the 9,400 addresses that bought 391 million FTM can offer support.