beincrypto.com
FTM price has rebounded 60% since dropping to $0.31 a month ago. On-chain data reveals the possibility of a prolonged rally. As Fantom’s long-term holders double down, is $0.70 a viable price target?
On April 7, the Fantom team announced a community proposal to reduce the validator staking requirement. If passed, the validator staking limit will be reduced from 500,000 FTM to as low as 50,000 FTM. Bullish investors expect this to enhance decentralization and increase the number of staking participants across the network.
On-chain data and recent price action suggest that long-term holders and crypto whales now appear to be front-running potential price gains from the network-wide surge in staked coins.
Fantom Whales are Positioning for More Gains
Fantom whales appear to be doubling down on their long positions, according to data compiled by Santiment. The FTM accumulation wave started in mid-January among whales holding between 10 million to 100 million coins. Between January 18 and April 4, they increased their balances by 470 million FTM.
Notably, between April 4 and April 12, they added another 20 million coins worth approximately $10 million as they continued the bullish accumulation.
When whales accumulate a cryptocurrency persistently for long periods, it could inspire other retail investors to become bullish.
Likewise, the accumulation trend among long-term network participants is another critical bullish signal revealed by the Fantom on-chain data.
The Mean Coin Age indicator across the Fantom network has trended further upwards since April 3, according to Santiment data. After a brief decline, the following chart illustrates how FTM Mean Coin Age grew 15% from 47.72 to 54.45 between April 2 and April 12.
Mean Coin age is calculated by multiplying the number of coins held on a network by the number of days those coins have been held in their current addresses. Increasing values means that long-term participants are holding on to their coins.
Considering the accumulation wave among the whales mentioned above cohort, the recent uptrend in Mean Coin Age could soon trigger an FTM price upswing.
FTM Price Prediction: Up Next $0.70?
IntoTheBlock’s Break Even Price distribution below suggests that FTM could rally toward $0.72 before facing significant resistance.
FTM could embark on a bull rally if it can break above the current resistance of 2,400 addresses that bought 68 million coins around $0.52. If that happens, the price could rise toward $0.72. However, the 8,000 break-even addresses holding 218 million tokens could sell once FTM approaches $0.72.
Yet, the bears could negate this stance if FTM slides below $0.47. Although, here, a large portion of the 2,400 addresses that bought 68 million coins could shore up the price.
But if that support cannot prevent the drop, then FTM could regress toward its next significant support at $0.43.