Fantom (FTM) Surges 68%: Is $1 Within Reach?

Fantom (FTM) Faces Challenges Despite Recent Rally

Fantom (FTM) has experienced a remarkable rally in the past 30 days, surging 68%. This impressive performance has sparked speculation about the token’s potential return to $1. However, on-chain data indicates that the path to this milestone is fraught with challenges.

Current Market Dynamics

FTM’s price is closely correlated with Bitcoin (BTC). As BTC experiences fluctuations, FTM is likely to follow suit. Recently, BTC has seen a decline, and historically, past instances have shown that FTM’s price has faced rejection at the $0.73 level. Analysts are cautioning that FTM could decline to around $0.64 as it approaches this resistance level.

Holders and Profit-Taking Behavior

As of September 22, Fantom’s price peaked at $0.71, aided by the formation of an inverse head and shoulders pattern that validated the uptrend. However, the current value sits at $0.69, indicating that FTM’s anticipated journey to $1 has been stalled.

Insights from On-Chain Data

• According to data from IntoTheBlock, FTM holders are significantly impacting the token’s price decline.
• Coins Holding Time, which measures how long a cryptocurrency is held without being sold, showed an upward trend until October 4.
• This increase in holding time suggests strong conviction in FTM’s short-term potential.
• However, over the past four days, the Coins Holding Time has decreased, indicating that holders have begun to book profits from the recent price hike.

Implications for Investors

If this selling pressure continues, it could pose significant challenges for FTM’s price movement. Investors should remain vigilant and consider these factors as they navigate the cryptocurrency market.

In conclusion, while Fantom’s recent rally has been noteworthy, the current market dynamics and profit-taking behavior among holders present potential obstacles for its ascent toward the $1 mark. As the situation evolves, investors should keep a close watch on market trends and price movements.