OI Data Reveals A 50% Inflow
In early August, Fantom experienced a sharp decline due to a broader market downturn, with Open Interest contracts falling to $47 million. Open Interest (OI) is a key on-chain metric that tracks the number of open positions in a cryptocurrency contract, reflecting liquidity and investor interest.
According to data from Santiment, the number of open contracts surged by an impressive 50% within a week. OI increased from $50 million to $75 million, indicating a boost in investor confidence.
Fantom Crypto Volume Analysis
The volume analysis reveals that transaction volumes have risen from $50 million to $200 million over the past week. This substantial increase in volume points to heightened demand for Fantom.
Additionally, the volume-to-market capitalization ratio is 12.9%, highlighting significant volatility in the cryptocurrency. With a current market capitalization of $1.07 billion, Fantom is ranked 59th in the crypto space.
Fantom is a smart contract platform offering decentralized finance (DeFi) services. It serves as an alternative to Ethereum and has 2.8 billion out of 3.1 billion FTM tokens in circulation.
Fantom Price Forecast: Bulls Initiate a Recovery
The recent sessions have shown consistent buying from the lows, suggesting a recovery phase for Fantom. The increased OI and transaction volume indicate bullish dominance in the short term.
Despite this, the long-term outlook remains bearish as the price is currently 45% below the 200-day EMA. Presently, Fantom has surpassed the 20-day EMA, indicating a short-term bullish trend. The daily chart also reveals the formation of a falling wedge pattern, with the price near the higher boundary.
If the price breaks above the $0.39 level, it may target a short-term goal of $0.45. Conversely, if it fails to break out of the falling wedge pattern and faces rejection at higher levels, it could potentially drop to the lower boundary of the wedge around the $0.29 level.
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