Amid the ongoing market reversal, Fantom (FTM) is poised to gain significant upside momentum following a breakout from a strong bullish price action pattern.
Fantom (FTM) Price Analysis
At press time, FTM is trading at $0.577, with a price increase of more than 12% in the past 24 hours. During the same period, its trading volume has surged 15%, indicating increased participation from traders and investors following the recent breakout.
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Behind-the-scenes developments drive FTM value reassessment
As for this wave of FTM's rise, I think it is Fantom's upcoming Sonic upgrade, which may be the key factor driving the revaluation of FTM's value.
The Sonic upgrade will introduce a new Fantom virtual machine (FVM), an optimized Lachesis consensus mechanism, and Carmen database storage, which are expected to significantly improve the performance of the Fantom network. It is revealed that the upgraded Fantom blockchain will be able to process more than 2,000 transactions per second (TPS), a qualitative leap from the current 30TPS. In addition, Sonic will reduce storage requirements by up to 90%, making node operation more cost-effective and accessible.
Technological innovation leads the development trend of blockchain
It is worth noting that the Sonic upgrade not only focuses on performance improvement, but also on full compatibility with existing Ethereum tools and contracts. This feature enables Fantom to seamlessly support various high-frequency DApps while maintaining its core advantages of security and decentralization. The closed test network simulating traffic has achieved the feat of a theoretical maximum throughput of 2000TPS, and the final completion time is only 729 milliseconds, which undoubtedly marks an important milestone in the development of blockchain technology.
FTM Technical Analysis and Upcoming Levels
Fantom (FTM) appears bullish as it breaks above the strong resistance at $0.54 and the neckline of a bullish inverted head and shoulders pattern. After this breakout, FTM clears the way for an upside rally.
Currently, one hurdle that FTM may face is near the $0.64 level. If this level is crossed, there are high chances of a surge of 50% towards the $0.85 level.
Additionally, FTM is trading above the 200 exponential moving average (EMA) on the daily timeframe. The 200 EMA is a technical indicator used by traders and investors to determine whether an asset is in an uptrend or a downtrend.
FTM’s on-chain indicators are bullish
However, this bullish outlook is further supported by on-chain indicators. FTM’s long/short ratio currently stands at 1.0597, indicating strong bullish sentiment among traders. Additionally, FTM’s future open interest has surged 25% over the past 24 hours, indicating growing interest among traders and investors following the bullish breakout.
Traders and investors often use the combination of an increase in open interest and a long/short ratio above 1 to enter long/short positions.
Currently, 51.5% of top traders hold long positions, while 48.5% hold short positions. These data indicate that bulls are dominating the asset and are likely to support the upcoming price surge.
in conclusion
In summary, Fantom has become a star project in the current cryptocurrency market with its outstanding technological innovation and strong market performance. With the upcoming Sonic upgrade and the gradual recovery of investor confidence, I have reason to believe that FTM will continue to maintain its upward momentum and bring more generous returns to investors. However, investment is risky and investors should be cautious when entering the market. While enjoying the market dividends, investors should also maintain rational thinking and do a good job of risk management.
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