Funding Rates Reach Weekly Highs
Fantom’s funding rates have increased to a weekly high, suggesting that more traders are taking long positions. This uptick in funding rates reflects a growing confidence in the asset’s potential for further gains.
Formation of a Golden Cross
In a significant technical indicator, Fantom has formed a golden cross, with the 50-day Simple Moving Average (SMA) crossing above the 200-day SMA. This pattern is often seen as a bullish signal, indicating that short-term momentum is gaining strength.
Surge in Large Transaction Volumes
Recent data shows a substantial increase in large transaction volumes for Fantom:
- Transaction volumes surged from $3 million to a yearly high of $201 million.
- FTM has outperformed most altcoins with 20% gains over the past 30 days, trading at $0.755 at press time.
The increase in transaction volumes coincides with rising whale activity. According to IntoTheBlock, trading volumes for FTM transactions exceeding $100,000 have shown remarkable growth.
Whale Activity and Market Control
These large transaction volumes are at their highest level in one year, suggesting that Fantom whales have become active following recent price gains. Notably, whales control approximately 73% of the Fantom supply, indicating that their movements could significantly impact FTM’s price direction.
Exchange Netflows and Selling Pressure
Interestingly, recent exchange netflows indicate that traders are withdrawing their FTM tokens from exchanges. In the past two days, FTM exchange netflows have been predominantly negative, which could ease selling pressure. This trend suggests that traders are less inclined to book profits, potentially allowing FTM to extend its gains.
Technical Analysis: Price Levels to Watch
Following the formation of the golden cross, FTM attempted to extend its gains but encountered resistance at the $0.797 level. A breakout above this level could pave the way for a 20% rally to the 1.618 Fibonacci level at $0.902. Conversely, if buyer hesitation persists, FTM may drop to test support at $0.732.
Positive Sentiment in the Market
Data from Coinglass shows that traders are betting on a bullish continuation, as funding rates have risen to their highest level in over a week. This spike indicates positive sentiment surrounding the token, as long traders are willing to pay more to sustain their positions.
In conclusion, with increasing funding rates, whale activity, and favorable technical indicators, Fantom (FTM) appears to be positioned for potential upward movement in the coming days. Traders should monitor key price levels for confirmation of this bullish trend.
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