Investors stockpile Fantom: Will prices see an impact?
Buying pressure on Fantom increases as a key metric flags a buying signal on its 12-hour chart.
- FTM was down by more than 12% in the last seven days.
- Buying pressure was high on FTM, but whales were selling their holdings.
As we begin the new year, Fantom’s [FTM], one of the key metrics, flagged a buying signal. This might be the right opportunity for investors to stockpile the token before it begins a rally.
Therefore, let’s take a look at the token’s other metrics to see whether investors have actually started to accumulate more FTM.
Fantom’s accumulation is high!
Fantom investors were not in their best mood last week, as the token’s price dropped by double digits. To be precise, FTM dropped by more than 12% in the last seven days.
At the time of writing, FTM was trading at $0.4864 with a market capitalization of over $1.3 billion.
While the token’s price sank, one of the key indicators flagged a buying signal. Ali, a popular crypto analyst, recently posted a tweet mentioning FTM’s TD Sequential.
As per the tweet, the metric showed a buy signal on FTM’s 12-hour chart. If the $0.45 support level holds, we could see FTM rise toward $0.50.
#Fantom | The TD Sequential presents a buy signal on $FTM 12-hour chart. If the $0.45 support level holds, we could see #FTM rise toward $0.50, and potentially even $0.55. pic.twitter.com/uOwzBUZb80
— Ali Charts (@alicharts) December 31, 2023
Since the metric showed a buying signal, AMBCrypto took a look at Santiment’s data to see whether investors were buying the token. As per our analysis, investors were buying FTM at press time.
This was evident from the fact that Fantom’s Supply on Exchanges registered a massive drop, while its Supply outside of Exchanges increased. Its total number of investors also went up, signifying high buying pressure.
While retail investors were actively buying FTM, whales were activating differently. The number of whale transactions dropped in the last seven days.
Not only that, but FTM’s supply held by top addresses registered a considerable drop last week, meaning that the top players were selling their holdings.
Is Fantom expecting a price uptick?
Though the whales had less faith in Fantom, the token’s price did gain bullish momentum in the recent past. As per CoinMarketCap, FTM was up by more than 2% in the last 24 hours alone.
To better understand whether the uptrend would continue, AMBCrypto took a look at the token’s daily chart.
Realistic or not, here’s FTM market cap in BTC’s terms
Our analysis revealed that FTM’s Chaikin Money Flow (CMF) was resting above the neutral mark. Additionally, its Relative Strength Index (RSI) registered an uptick, increasing the chances of a continued price surge.
Nonetheless, considering the unpredictable nature of the crypto space, nothing can be said with the utmost certainty. Fantom’s MACD displayed a bearish crossover, which can cause trouble for investors in the days to follow.
