FTM soars 21% amid Sonic mainnet launch hype

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of market fluctuations and trends. The recent surge in Fantom’s FTM token is indeed intriguing, particularly given its position among the top 100 cryptocurrencies by market cap.

Among the top 100 cryptocurrencies by market capitalization, Fantom’s FTM coin stood out as the most substantial gainer, fueled by excitement within the community about the upcoming launch of its Sonic mainnet and an increase in large-scale investments by prominent investors, often referred to as ‘whales’.

During the bustling hours of Asian trading on November 27th, I observed a significant surge: Fantom Token (FTM) rose an impressive 21% to reach an eight-month peak of $1.13. This noteworthy increase subsequently propelled its market capitalization beyond the $3 billion mark, as I noted at the time. With this growth, Fantom claimed a position among the top 53 crypto assets by market cap, according to data gathered from CoinGecko.

Over the past five days, the value of that altcoin has been steadily climbing, resulting in a weekly increase of approximately 56.47%. However, it’s important to note that even with this recent surge, Fantom (FTM) is currently 68.84% lower than its peak price of $3.46, which it reached back in October 2021.

Why is Fantom rising?

The latest rise in Fantom’s price can be attributed to the eagerness surrounding the imminent debut of its Sonic mainnet. Additionally, advancements within the ecosystem and growing interest among investors have played a significant role in driving up its value.

As a crypto investor, I’m excited about the Sonic upgrade on Fantom, as it signifies the developers’ ambition to strengthen its standing within the DeFi sector. However, it’s important to note that according to DeFi Llama, the total value locked in the ecosystem has seen a significant decrease from a peak of over $15 billion to currently stand at $312.39 million. This could potentially present opportunities for strategic investments, but always remember to do your own research and invest wisely.

Building on the existing momentum, Sonic Labs has revealed a partnership with OctavFi, a web3 financial data platform. This alliance aims to introduce sophisticated on-chain treasury administration and financial reporting to Sonic’s protocols.

Over the last day, there’s been a significant rise in purchasing actions by ‘whales’. As per IntoTheBlock’s data, the net flow of whale holders has skyrocketed more than 1235%, going from an inflow of $712,000 on November 20 to over $9.51 million on November 22.

FTM faces resistance at $1.13

As cryptocurrency enthusiasts show increasing enthusiasm, experts at X anticipate that the current upward trend will persist if this altcoin successfully breaks through a significant barrier in its resistance level.

Anonymously posted by CryptoBullet, this analysis suggests that if Filecoin (FTM) manages to break past the crucial resistance point of $1.13, it may ascend towards $1.62. Beyond that, potential targets could be set at $2.20 and $2.77, as long as the overall sentiment among the community remains optimistic.

Just like the well-known crypto analyst Altcoin Sherpa (with more than 232k followers), also highlighted $1.13 as a crucial resistance point. He mentioned that FTM’s price increase follows approximately two years of accumulation, implying that substantial growth could occur if this level is surpassed.

On the one-day FTM/USDT chart, the Relative Strength Index (RSI) reading of 70 implies a potential short-term price correction. Nevertheless, the Moving Average Convergence Divergence (MACD) indicates that the bullish trend is robust and may continue to drive the rally even in overbought conditions, as the MACD line is significantly above the signal line.

Due to the prolonged surge in its value, it’s possible that FTM might dip back towards the $1.00-$1.02 price range, which has historically provided support. If the positive trend persists, the next significant barrier for further growth could be found around $1.13-$1.20.

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2024-11-27 14:28