Fantom’s Sonic Rally: Unpacking the 21% Price Surge
The cryptocurrency market has witnessed a significant surge in Fantom’s price, with FTM rising by over 21% to an eight-month high of $1.13. This remarkable gain has propelled Fantom to the 53rd largest cryptocurrency by market capitalization, as per data from CoinGecko. The altcoin’s price increase can be attributed to the excitement surrounding the upcoming launch of its Sonic mainnet, coupled with ecosystem developments and increased demand from investors.
Why is Fantom Rising?
The recent rally in Fantom’s price can be attributed to several factors:
- Sonic Mainnet Launch Hype: The upcoming launch of the Sonic mainnet has generated significant excitement among the Fantom community. The Sonic upgrade aims to boost Fantom’s position in the DeFi industry, and data from DeFi Llama shows that the total value locked in the ecosystem has dropped to $312.39 million from a record high of over $15 billion.
- Ecosystem Developments: The collaboration between Sonic Labs and web3 financial data platform OctavFi to bring advanced on-chain treasury management and financial reporting to Sonic protocols has contributed to the surge in Fantom’s price.
- Increased Demand from Investors: The uptick in buying activity among whales has also played a significant role in Fantom’s price increase. According to data from IntoTheBlock, whale holder netflow has surged by over 1235%, increasing from an inflow of $712,000 on Nov. 20 to over $9.51 million on Nov. 22.
Resistance at $1.13
Analysts on X expect the rally to continue if Fantom manages to breach the key resistance level of $1.13. Pseudonymous analyst CryptoBullet noted that if FTM surpasses this level, it could potentially climb to $1.62, with further targets at $2.20 and $2.77, assuming that the community remains bullish. Similarly, crypto commentator Altcoin Sherpa identified $1.13 as a critical resistance, noting that Fantom’s rally follows over two years of accumulation, setting the stage for significant upside if this level is breached.
Technical Analysis
On the 1-day FTM/USDT chart, the Relative Strength Index at 70 suggests that the price could pull back in the short term. However, the Moving Average Convergence Divergence shows the MACD line well above the signal line, indicating that the bullish trend remains strong and could sustain the rally despite overbought conditions. Given the extended nature of the recent rally, Fantom could retrace to the $1.00-$1.02 support zone before attempting further upside. If the bullish momentum continues, the next key resistance lies around $1.13-$1.20.
Conclusion
Fantom’s price surge can be attributed to the excitement surrounding the upcoming launch of its Sonic mainnet, coupled with ecosystem developments and increased demand from investors. The altcoin’s price increase has propelled it to the 53rd largest cryptocurrency by market capitalization. Analysts expect the rally to continue if Fantom manages to breach the key resistance level of $1.13. However, given the extended nature of the recent rally, Fantom could retrace to the $1.00-$1.02 support zone before attempting further upside.
