Is Fantom’s 12% rise the start to a long-haul rally?
- FTM may climb to $0.65 as it faced no resistance and because of a potential meme season.
- The token was overbought but this may not hinder the growth.
Like many altcoins, the value of Fantom [FTM] rose in the last 24 hours. At press time, FTM’s price was $0.49—a 12.17% hike within the mentioned timeframe.
However, the jump might be the tip of the iceberg as crypto analyst Ali Martinez noted that there is room for more growth.
A bullish turn?
Martinez posted about FTM on his X account on 21st December. According to him, no resistance in sight could stop FTM’s rally. He also noted the token might hit $0.65 as long as it trades above $0.47.
#Fantom trading above $0.47 marks a significant bullish turn, as there's no major resistance in sight until $0.65. As long as $FTM stays above this crucial level, brace for a strong rally! pic.twitter.com/TUIy34rMEF
— Ali (@ali_charts) December 21, 2023
The analyst’s prediction might not surprise those who have been following the market in recent times. A few days ago, AMBCrypto reported about the Fantom native token. In the report, we discussed the resurgence and increased demand for FTM.
As it stands, it does not seem like the demand for the token will wane soon. One reason for this conclusion is the speculation that a Fantom meme season could be close.
AMBCrypto investigated if there was any truth in the rumors. Based on our findings, meme coins like CEKKE, MAFIA, and CRONJE (named after Fantom’s co-founder Andre Cronje) are being deployed on the ecosystem.
Because of this, demand for FTM may continue to increase. This potential increase could also trigger a rise in the price.
Furthermore, the Fantom meme season might help FTM replicate Solana’s [SOL] form. At the time of writing, SOL was close to becoming a three-digit value cryptocurrency.
One of the reasons for this was the increasing demand for SOL due to the emergence of memes like BONK and MYRO. There was also on-chain evidence that FTM could well be on its way to $0.65.
Using Santiment’s data, AMBCrypto looked at the exchange inflow and outflow on the Fantom network.
At press time, FTM’s exchange inflow was 213,000 while the exchange outflow was 694,000. This large difference implies that more market participants were willing to hold FTM than those planning to offload the token.
If this remains the case, then FTM may not experience any major nosedive in the short term. The next thing to check was the technical outlook.
The FTM price chart has this to say
Based on the 4-hour FTM/USD chart, there was strong support at $0.39. Also, bulls beat the rejection at $0.45 on the 21st of December, highlighting how bears have no say in the market structure.
In addition, the Chaikin Money Flow (CMF) was 0.14. This reading implies an increase in accumulation and a confirmation of the FTM price uptrend.
However, the Relative Strength Index (RSI) was 70.26. This means that FTM was overbought and a retracement could be near.
Realistic or not, here’s FTM’s market cap in SOL terms
At the same time, the current market momentum may defy technical expectations as the token value may breach the $0.55 level before any notable pullback.
Regardless of the possible drawdown, FTM remains in the position to rise to $0.65.