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Fantom price gained traction and surged after the bulls initiated a recovery from the lows. When writing, Fantom was exchanging hands at around $0.38 level, recording a positive intraday development of nearly 5%.
Along with a strong rebound in the price, few on-chain metrics have recorded a notable shift in recent sessions. The investors’ sentiment seemed to improve as the OI data indicated an inflow.
Also, the transaction volume has improved, indicating a heightened demand and increased user engagement. However, the long-term trend outlook still lies on the bearish side, adding a risk of price rejection at higher levels.
Let’s analyze it and get a clear picture of the possible price trajectory.
OI Data Reveals A 50% Inflow
In the 1st week of August, the Fantom price noted a sharp downturn following the broader market crash. During this period, the Open interest contracts dropped to $47 Million.
The open interest contract is an on-chain metrics that monitors the number of open positions in a specific cryptocurrency contract. It also indicates the liquidity and interest in a particular crypto contract.
As per the data obtained from Santiment, the number of open contracts saw an impressive 50% growth a week. The OI data surged from $50 Million to $75 Million, indicating an improvement in the investors’ confidence.
Fantom Crypto Volume Analysis
The volume analysis highlighted that the transaction volume has grown from $50 Million to $200 Million in a week. A strong rise in the volume indicates a heightened demand for crypto.
Moreover, the volume to market capitalization was 12.9%, indicating high volatility in the crypto. With a live market capitalization of $1.07 Billion, Fantom ranks 59th in the crypto space.
Fantom is a smart contract platform providing developers with decentralized finance (DeFi) services. It is an open-source platform designed as an alternative to Ethereum. Out of 3.1 Billion FTM tokens, nearly 2.8 Billion FTM tokens are currently in circulation.
Fantom Price Forecast: Bulls Initiate a Recovery
Moreover, the recent session has observed consistent buying from the lows, indicating the price is heading for a recovery. The increased OI data and transaction volume suggested the bulls’ domination in the short term.
However, the long-term trend outlook favored a bearish side as the price lags 45% below the 200-day EMA. As of now, the Fantom price has surpassed the 20-day EMA, suggesting a bullish outlook in the short term.
Moreover, the daily chart highlighted the formation of a falling wedge pattern with the price currently established near the higher boundary. Conversely, if the price resumes its recovery above the $0.39 level, it may rise toward the next short-term target of $0.45.
However, suppose the price fails to initiate a breakout of the falling wedge pattern and suffers rejection from the higher levels. In that case, it may slide towards the lower boundary of the wedge at the $0.29 level.