Fantom’s FTM emerged because the main gainer among the many high 100 cryptocurrencies by market cap amid group hype relating to the launch of its Sonic mainnet and a big rise in whale funding.
FTM rose by over 21% to an eight-month excessive of $1.13 in the course of the early Asian buying and selling hours on Nov. 27. This led to a subsequent bounce in its market cap, which stood at over $3 billion on the time of writing, making it the 53rd largest crypto asset by market ca per information from CoinGecko.
The altcoin has been rising for 5 consecutive days, locking over 56.47% positive aspects previously week. Regardless of this, FTM continues to be down 68.84% from its all-time excessive of $3.46 in October 2021.
Why is Fantom rising?
Fantom’s current rally was fueled by the thrill surrounding the upcoming launch of its Sonic mainnet. Ecosystem developments and elevated demand from traders additionally contributed to the surge.
With the Sonic improve, Fantom builders goal to spice up its place within the DeFi business. Knowledge from DeFi Llama reveals that the entire worth locked within the ecosystem has dropped to $312.39 million from a file excessive of over $15 billion.
Including to the momentum, Sonic Labs just lately introduced a collaboration with web3 monetary information platform OctavFi to convey superior on-chain treasury administration and monetary reporting to Sonic protocols.
In the meantime, there was an uptick in shopping for exercise amongst whales over the previous day. In accordance with information from IntoTheBlock, whale holder netflow has surged by over 1235%, rising from an influx of $712,000 on Nov. 20 to over $9.51 million on Nov. 22.
FTM faces resistance at $1.13
With rising curiosity from the crypto group, analysts on X count on the rally to proceed if the altcoin manages to breach a key resistance stage.
Pseudonymous analyst CryptoBullet famous that if FTM surpasses the important thing resistance stage of $1.13, it may probably climb to $1.62, with additional targets at $2.20 and $2.77, assuming that the group stays bullish.
Equally, crypto commentator Altcoin Sherpa, with over 232k followers, additionally recognized $1.13 as a vital resistance, noting that FTM’s rally follows over two years of accumulation, setting the stage for vital upside if this stage is breached.
On the 1-day FTM/USDT chart, the Relative Power Index at 70 suggests the worth may pull again within the brief time period. Nonetheless, the Shifting Common Convergence Divergence reveals the MACD line effectively above the sign line, indicating that the bullish pattern stays robust and will maintain the rally regardless of overbought situations.
Given the prolonged nature of the current rally, FTM may retrace to the $1.00-$1.02 help zone earlier than making an attempt additional upside. If the bullish momentum continues, the subsequent key resistance lies round $1.13-$1.20.
