The price of Phantom (FTM) has increased by 9% in the last 24 hours, making it the best performing cryptocurrency among the top 100 cryptocurrencies by market cap. This uptrend is not just supported by speculation, but also by strong demand, as evidenced by the surge in trading volume.
According to on-chain indicators and technical analysis, FTM appears to be capable of another 13% price increase. This analysis explores whether such a goal is achievable.
Phantom's 'Sonic Upgrade' draws attention from the market
Currently FTM is trading at $0.56 , the first time it has been there since July 2. The current rally, triggered by strong demand, has seen volumes soar to 30-day highs.
Additionally, FTM’s weighted sentiment index has risen to its highest level since March 2023. FTM’s weighted sentiment index currently stands at 5.69, indicating that discussions about alternative coins on social media are largely positive.
The discussion will likely center around Phantom’s Sonic Upgrade, which is scheduled to launch on mainnet in November and will improve network performance by introducing a new Phantom Virtual Machine (FVM), an optimized Lachesis consensus mechanism, and the Carmen database storage system.
Read more: 9 Best Phantom (FTM) Wallets in 2024
These improvements will allow Phantom to process over 2,000 transactions per second, up from its current 30 per second, and reduce final confirmation times to around 1 second.
Since the Sonic testnet launched on September 6, there has been a noticeable increase in whale activity. According to Santiment, an online cryptocurrency data platform, the number of whale addresses holding between 1 million and 10 million FTM coins has increased by 5%. This suggests that large holders are accumulating coins ahead of the mainnet launch.
FTM Price Prediction : 13% Upside Possible
The rising Relative Strength Index (RSI) for FTM is currently at 67.50, indicating continued demand for the altcoin, suggesting that buying pressure is outpacing selling activity. This level suggests that the market is approaching overbought conditions, which reflects strong demand.
Additionally, the coin’s Elder-Ray Index is positive at 0.12, reinforcing the bullish momentum. A positive reading indicates that buyers are in control, which is consistent with the current price action.
If this bullish trend continues, the price of Phantom could rise another 13% to $0.63, the key resistance level from April. If it breaks above this level, FTM could target the next resistance level at $0.85.
Read more: Phantom (FTM) Price Forecast 2024/2025/2030
However, if profit-taking activity increases , Phantom's price could fall to $0.25, the low seen on August 5 .
