Fantom targets the dollar as millions of tokens are in gains

While Fantom’s FTM price has steadily climbed, indicators suggest the potential for even greater gains. This analysis thus presents the factors that could stimulate the price increase of the token, but also the resistance levels to monitor.

At the time of writing, Fantom’s price is $0.67, having fallen back from the $0.75 reached at the start of the day before the market crash. Currently, 47% of FTM holders are now in profit. However, according to the Global In/Out of Money (GIOM) Around Price, current loss-making holders could soon benefit from price appreciation.

The GIOM classifies addresses according to those which are making profits, those on the balance point and finally those which are in a state of loss at time T.

Through an on-chain analysis, we can evaluate the intensity of supports or resistances. According to IntoTheBlock, approximately 25,230 addresses that accumulated FTM between $0.94 and $1.50 currently hold over 100 million tokens in losses.

Learn More: How to Add Fantom to MetaMask: Step-by-Step Guide.

GIOM of Fantom. Source: IntoTheBlock

However, in the event of strong support around $0.75, these addresses could soon become profitable.

Additionally, Fantom’s open interest has also increased, suggesting that more money is being pumped into contracts tied to the FTM token.

Historically, whenever this happens at the same time as a price increase, the uptrend strengthens. Thus, it is highly likely that a bullish continuation could be noted. As a result, the FTM price could move closer to the $1 mark.

Fantom Open Interest (FTM)
Open interest from Fantom. Source: Santiment

For some traders, including Ansem, the current quarter could be one of expansion. He notes that the precedent was on the contrary that of accumulation. As a result, he expects a much higher FTM price.

“FTM price action is a good indicator of the different periods we are in now. March -> July: decrease in alts only [-70-80 %]. July -> September: lateral accumulation. Currently, several indicators give us hope for the start of an aggressive trend,” Ansem wrote.

FTM Price Prediction: Higher Values ​​Only

On the daily chart, FTM price increased after the formation of an inverse head-and-shoulder pattern. Currently trading below $0.75, BeInCrypto looked at the Directional Movement Index (DMI) to support an upcoming continuation of the altcoin’s uptrend.

As its name suggests, the DMI measures the trend of a crypto. At the time of writing, the DMI (red) was at 5.68, indicating that the sellers are not in control. On the other hand, the DMI (green) was higher at 2.08.

Additionally, the average directional index (ADX), which measures directional strength, increased. Currently, ADX (yellow) is at 48.49, suggesting that Fantom price may continue to rise.

Fantom (FTM) price analysis
Daily analysis of the Fantom price. Source: TradingView

If confirmed, FTM price could break above the $0.84 resistance in the near term. As a result, it could even find itself propelling to $1.14. However, the token could decline if FTM holders experience strong profit-taking. If this happens, FTM could decline.

Disclaimer

Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult a professional before making any financial decisions.

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