Fantom (FTM) Price Spikes to 3-Month High

Fantom (FTM) is up 9% in price over the past 24 hours, making it the best performing coin among the 100 coins by market Capital . This rally is not only driven by speculation but is also supported by strong demand, as evidenced by the surge in volume.

On chain metrics and technical analysis suggest that FTM could see a 13% increase in value. This analysis will XEM whether that target is achievable.

Fantom 's Sonic Upgrade Is A Hot Topic

At the time of writing, FTM is trading at $0.56, a price it reached on July 2. The rally is fueled by strong demand, reflected in its volume , which has risen to a 30-day high.

Additionally, FTM's Weighted Sentiment Index, which reflects the market's sentiment towards the asset, has risen to its highest level since March 2023. Currently, FTM 's index is 5.69, indicating that social media discussions about the altcoin are mostly positive.

These discussions are likely to focus on Fantom 's Sonic upgrade , which is expected to be deployed on mainnet in November. This upgrade will improve network performance by introducing a new Fantom Arm Virtual Machine (FVM), an optimized Lachesis consensus mechanism, and a Carmen data storage system.

These improvements will allow Fantom to process more than 2,000 transactions per second (TPS) with a completion time of about one second, compared to the current 30 TPS.

Since the Sonic testnet launched on September 6, there has been a significant increase in large investor activity. According to Santiment, the number of whale addresses holding between 1,000,000 and 10,000,000 FTM has increased by 5%, indicating that large investors are accumulating ahead of the mainnet launch.

FTM Price Prediction : 13% Upside Possible

FTM 's Relative Strength Index ( RSI ) is at 67.50, indicating that demand for this Altcoin is still increasing, indicating that buying pressure is outpacing selling activity. This level indicates that the market is approaching overbought conditions, which usually reflects strong demand.

Additionally, the currency's Elder-Ray index, a measure of the strength of buyers and sellers in the market, is at a positive 0.12, reinforcing the bullish trend. A positive reading indicates that buyers are in control, which is consistent with the current price trend.

If this bullish trend continues, Fantom ’s price could rise another 13% to $0.63, a key resistance level from April. Breaking above this level could push FTM to the next resistance target of $0.85.

However, if profit-taking increases, Fantom 's price could drop to the August 5 low of $0.25, invalidating the bullish outlook.

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