The Fantom (FTM) price rose 25% over 7 days, reaching $0.51 on September 16. This is part of a rally that began on August 6, and has seen the price rise by over 40% over the past 30 days.
According to data from Cointelegraph Markets Pro and TradingView, FTM rose from a low of $0.26 on August 5 to a maximum gain of 103% on September 16, hitting an intraday high of $0.53.
FTM/USD daily chart. Source: TradingView
By comparison, Bitcoin (BTC) is down 4% over the past 30 days, while Ether (ETH) is down 12.6% over the same period. The total cryptocurrency market capitalization is also down 2.5% over the past month, reaching $2.2 trillion.
As a result, FTM has become one of the cryptocurrencies with the biggest monthly gains among the top 100 cryptocurrencies by market cap over the past 30 days.
Top Gainers Over 1 Month Source: CoinMarketCap
Commenting on the recent FTM price surge, anonymous cryptocurrency trader and investor Mister Crypto attributed Fantom’s performance to “a lot of developments behind the scenes.”
Added by Mister Crypto.
“I believe that eventually we will see a tremendous uptrend. It may take some time, but I think it will happen eventually.”
Perhaps the most notable development in Fantom is the Sonic upgrade, which is expected to significantly improve network performance by introducing a new Fantom Virtual Machine (FVM), an optimized Lachesis consensus mechanism, and Carmen database storage.
Sonic’s release is scheduled for November or December 2024.
After this upgrade, the Fantom blockchain can process over 2,000 transactions per second (TPS) with a finality time of approximately 1 second, a significant improvement from the current 30 TPS.
The closed testnet, utilizing simulated traffic, demonstrated a theoretical throughput of up to 2,000 transactions per second and a finality time of 729 milliseconds, marking a significant milestone in blockchain development.
source: Cointelegraph
Additionally, Sonic is expected to reduce storage requirements by up to 90%, making node operations more cost-effective and accessible.
Fully compatible with existing Ethereum tools and contracts, Sonic is ready to support a wide range of high-frequency DApps without compromising security or decentralization.
But despite the impending upgrade, investor interest in Fantom’s decentralized finance ecosystem has yet to recover.
According to data from DefiLlama, the total value locked (TVL) in Fantom’s DeFi applications has fallen to $86.5 million, a paltry figure compared to its all-time high of $7.93 billion in March 2022.
Total value locked in Fantom. Source: DefiLlama
However, interest in Fantom DApps is minimal, with TVL increasing by 22% since August 8th.
This is also supported by data from Glassnode, which shows that the number of daily active addresses (DAAs) on the Fantom network has increased by 67% from 203 to 346 in one month.
DAA by Fantom. Source: Glassnode
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Fantom price is receiving strong support
FTM’s strong performance over the past 30 days is also due to its relatively strong underlying support.
On-chain data from IntoTheBlock shows that FTM is holding relatively strong support compared to the resistance it has faced on its recovery path. The in/out of the money (IOMAP) chart around the price below shows that 1,560 addresses previously bought around 242.56 million FTM tokens in the demand zone between $0.47 and $0.48.
The recovery momentum of FTM is likely to continue in the short term due to increased buying by these investors.
Fantom IOMAP chart. Source: IntoTheBlock
From a technical perspective, FTM appears to be trading below the neckline of an inverse head and shoulders (IHS) pattern.
The IHS pattern is a reversal technical setup that forms after a long downtrend. It consists of a head, left shoulder, and right shoulder, which are inverted and positioned below the neckline.
A breakout and close above the neckline indicates a reversal in the downtrend.
This pattern is usually broken after the price rally above the neckline, indicating a complete reversal of the downtrend. The FTM/USD chart below shows a similar technical bullish setup.
FTM/USD daily chart. Source: TradingView
If the daily candlestick closes above the neckline at $0.53, FTM will consider this level as support. If the price stays above the neckline, it suggests that bulls have the ability to sustain higher levels.
That would increase the odds of a breakout towards the pattern’s technical target of $0.81, which would represent a 56% upside from current prices.
The relative strength index showed an upward trend, and the price strength of 62 demonstrated the dominance of buyers in the market.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.