Fantom Price Analysis: Decoding Why FTM price rallied over 30% in the past 2 days

Key Takeaways:

• Fantom price surged massively in the past couple of days as the price closed the previous day’s trade at $0.2176 with a market capitalization of $554.58M and a circulating supply of 2.55 billion.
• The FTM price appears to be extremely bullish at the moment as the token appears to be poised to undergo a ‘v-shape’ recovery to reach the interim resistance shortly.

Fantom, created as an alternative to Ethereum, is an open-source, decentralized, smart-contract platform for dApps and digital assets. The main focus of the chain lies around 3 main components, scalability, security & decentralisation. It offers tools to simplify the integration of existing dApps & staking reward systems. 

The platform uses an independent consensus mechanism called Lachesis which provides securities for other layers including opera, Fantom’s EVM-compatible smart contract chain. 

FTM is the native PoS currency which backs the entire platform and is used as a payment mode, to pay network fees, staking and governance. In short, FTM is the backbone of the transactions allowing fee collection and staking activities. 

Recent Updates:

• Fantom collaborated with a popular hardware wallet, Ledger, where-in the users may now send & receive FTM tokens directly

Fantom just arrived on @Ledger Live!

Users can now send, receive & view their $FTM directly through the Ledger Live app.https://t.co/cfbXguC0US pic.twitter.com/PFUPEyQkrW

— Fantom Foundation (@FantomFDN) November 29, 2022

• GameFi, a popular play-2-earn gaming platform is being built on the Fantom blockchain

The next generation of gaming is being built today.

Discover your favorite #GameFi, on #Fantom 🎮 pic.twitter.com/stSbbtQLIE

— Fantom Foundation (@FantomFDN) October 17, 2022

FTM TECHNICAL OVERVIEW

FTM/USDT | Source: Tradingview

• After experiencing a steep downfall for more than a couple of months, the FTM price is trying to set up a significant upswing.
• The fresh surge has revived the bullish targets at $0.22 initially and later maintained a notable upswing close to the main target at $0.3.
• Meanwhile, the token may face bearish pressure one it surpasses $0.24 which may compel the price to consolidate for an extended period.
• Besides, the buying pressure has mounted notably which may keep up the bullish momentum of the FTM price to some extent.

Read more: Top Crypto Price Predictions

Fantom’s Network growth sees a spike

Fantom Network Growth | Source: Santiment

The Network growth of the blockchain refers to the change in total addresses. The indicator tracks variation relative to the prior week’s total addresses. Further, it is optimised to reflect bullish or bearish sentiment for each individual asset’s behaviour. With a jump in the levels, the total addresses are also assumed to have raised, attracting more traffic to the platform.

Fantom’s network growth has been lackluster through most parts of the year – but the month of November recorded a significant jump in this particular metric. In fact, it is the second biggest jump in the network growth in all of 2022. This indicates that the project could be gaining attention and traction and something good is brewing behind the scenes.

Fantom’s Daily Active Address also sees a major jump

Fantom Daily Active Addresses | Source: Santiment

The daily active address is the number of addresses who are directly transacting on the chain. This indicates good traction on the blockchain network, and ties in well with the metric analysed before too. We can also see that the hike in FTM price also coincides with the spike in daily active address. Meanwhile, it is possible we may see some increased volatility, however, overall this is a good indication too.

Conclusion

The Fantom price has been largely incremental ever since the price flipped from its lows. Moreover, a rise in the network growth and the daily active address suggests the revival of the bullish trend very soon. Until then, the price of FTM is expected to rise and consolidate above $0.3 to $0.4. As the bulls reclaim their hegemony, a significant upswing beyond $0.5 is entirely possible.

Prices as on 30 November, 2022.