Just 104 days ago, the crypto space experienced one of the most brutal crashes that put the entire market into a three-month consolidation phase. Most of the top coins, including Bitcoin and Ethereum, still haven’t fully recovered from it. However, a few exceptions like Cardano, Solana, and Avalanche have been able to change that narrative by creating new highs recently.
At the time of going to press, another Alto – Fantom – was seen making quick strides towards its ATH area. After rising 248%, 60% and 25% monthly, weekly and daily, respectively, this token was trading at $ 0.86 at the time of writing.
Assessment of the strength of the rally
Well, the strong momentum has been well demonstrated by the latest data on the derivatives market. The financing rate was initially positive on all major stock exchanges [Binance: 0.02%, KuCoin: 0.13%, OKEx: 0.08%]which underlines the bullish sentiment of the FTM dealers.
The above narrative was further reinforced by the Perpetual Swaps Open Interest data. The same was observed around the high of $ 77 million at the time of writing. Notably, when the token rebounded in May, the OI rarely broke above $ 41 million. By and large, this means that new money is pouring into the Fantom market like never before.
Additionally, as can be seen from the chart below, the market has been quite inconsiderate of short traders lately. For example, on August 29, short contracts worth $ 4.01 million were liquidated. Again, this is evidence of the market’s bullish lean.
Fantom’s network activity has also increased rapidly recently. Santiment’s data showed that on August 30th, FTM’s circulation saw a sudden surge in unique tokens between addresses. The same was at its 2 month high at the time of writing. The transactions carried out on the Fantom Bridge also exceeded the 4,500 mark at the time of going to press
What would the coming days look like?
On the price chart, Fantom was seen just below its 0.88 resistance level. The increasing volumes and the pressure to buy should help FTM to overcome this hurdle within the next trading sessions. If that happens, the Alt can be expected to surpass its ATH by mid-May [$0.95]. In retrospect, the door would open to $ 1. Failure to test above the above resistance levels would, however, put the alternative back into its consolidation phase.
In addition, the Fantom Foundation has announced an incentive program for building owners. In this process, protocol teams would be rewarded for maintaining and increasing the TVL on Fantom. If all goes well, it can be expected that this development will also have a positive effect on the price of the token.