Famtom: Short Sellers and Whales Fuel FTM’s Rally – Is $1 Within Reach?

• FTM’s brief liquidations rose to $1 million after the worth rose 10% to $0.76.
• Excessive transaction volumes additionally elevated by 1,000%, indicating a powerful enhance in whale exercise.

Phantom [FTM] has been on a gentle uptrend in current weeks, with a 30-day achieve of over 50%. On the time of writing, FTM was buying and selling at $0.76 after rising 9% in 24 hours.

Whereas bullish sentiment within the broader cryptocurrency market supported this rally, two different catalysts performed a job in fueling the uptrend.

Peak briefly liquidations

Fantom’s current positive aspects created losses for brief sellers after brief liquidations reached the $1 million mark inside 24 hours. This was the second highest stage of brief liquidations this month.

Supply: Coinglass

When the worth of an asset rises and reaches a brief liquidation zone, these merchants are pressured to purchase the token to cowl their positions. This extra buying strain resulted in income for FTM.

FTM’s liquidation heatmap reveals that there was a scorching liquidation zone between $0.76 and $0.78. As the worth rose and reached these ranges, pressured shopping for by brief sellers created upward momentum.

Supply: Coinglass

Massive transaction volumes enhance by 1,000%

A surge in whale exercise has additionally pushed FTM’s income to a month-to-month excessive. Knowledge from InTheBlok reveals that FTM transactions over $100,000 elevated from 4.38 million to 50.78 million. This implies a rise of 1,000%.

Supply: IntoTheBlock

This spike in giant transactions coincided with a value enhance, indicating that whales have been possible shopping for FTM. This has additionally fueled current positive aspects.

Nonetheless, you will need to observe that whales management 73% of the whole FTM provide. Subsequently, a spike in giant transactions may trigger value volatility.

Can FTM rise to $1?

FTM bulls gained energy after the 50-day Easy Shifting Common (SMA) crossed above the 150-day SMA earlier this week. This crossover coincided with a spike in buying volumes, as evidenced by the quantity histogram bars.

The 50-day SMA is tilting north and approaching the 200-day SMA, and if it strikes above that, Fantom may have shaped a golden cross, which is able to enhance bullish sentiment.

Supply: TradingView

The Relative Power Index (RSI) of 64 reveals that patrons are outnumbering sellers because the bullish momentum reveals energy.

Learn Fantom’s [FTM] Value forecast 2024–2025

If this shopping for strain continues and holds FTM ranges above $0.76, the subsequent main resistance zone is above $1.

One issue that would assist this huge value transfer is the rise in open curiosity. FTM’s open curiosity is up 19% to $243 million on the time of writing, the very best stage since Could.

Supply: Coinglass