3 Key Reasons Why Fantom May Be A Good Pick For Next Week
3 Key Reasons Why Fantom May Be A Good Pick For Next Week
Meta Description: Fantom price gained traction and surged higher after the bulls initiated a recovery
The Open Interest contracts have jumped by 50% to $75 Million indicating an accumulation at the lower levels.
The transaction volume has surged from $50 Million to $200 Million a day in the recent sessions.
Fantom price gained traction and surged higher after the bulls initiated a recovery from the lows. At the time of writing, Fantom was exchanging hands close to $0.38 level recording a positive intraday development of nearly 5%.
Along with a strong rebound in the price, there are few on-chain metrics which have recorded a notable shift in the recent sessions. The investors sentiment seemed to be improving as the OI data indicated an inflow.
Also, the transaction volume has improved indicating a heightened demand and increased user engagement. However, the long term trend outlook still lies on the bearish side adding a risk of rejection in the price at the higher levels. Let's analyze it and try to get a clear picture about the possible price trajectory.
OI Data Reveals A 50% Inflow
In the 1st week of August, Fantom price noted a sharp downturn following the broader market crash. During this period, the Open interest contracts dropped to $47 Million.
The Open interest contract is an on-chain metrics which monitors the total number of open positions in a specific cryptocurrency contract. It also indicates the liquidity and interest in a particular crypto contract.
<iframe title="Santiment Chart: Total Open Interest in USD (FTM), Price (FTM)" width="800" height="425" src="embed.santiment.net/chart?ps=fantom&pt=FTM&df=2024-02-17T18:29:59.234Z&dt=2024-08-17T18:29:59.234Z&emcg=1&emhwm=1&wm=total_open_interest;price_usd&wax=0;1&wc=#FF5B5B;#26C953&ws={"node":"area"};" scrolling="no"></iframe>
Source: app.santiment.net
As per the data obtained from an on-chain analytics website app.santiment.net, the number of open contracts saw an impressive 50% growth a week. The OI data surged from $50 Million to $75 Million indicating an improvement in the Investors confidence.
Fantom Crypto Volume Analysis
The volume analysis highlights that the transaction volume has grown from $50 Million to $200 Million in a week. A strong rise in the volume indicates a heightened demand in the crypto.
<iframe title="Santiment Chart: Price (FTM), Volume (FTM), Price (FTM) MA(50), Price (FTM) MA(200)" width="800" height="425" src="embed.santiment.net/chart?ps=fantom&pt=FTM&df=2024-02-17T18:29:59.234Z&dt=2024-08-17T18:29:59.234Z&emcg=1&emhwm=1&wm=price_usd;volume_usd;[2;price_usd;MA50];[2;price_usd;MA200]&wax=0;1&wc=#33bd5d;#D2D6E7;#FF5B5B;#FFCB47&ws={"interval":"1d","node":"candle"};;;" scrolling="no"></iframe>
Source: app.santiment.net
Moreover, the volume to market capitalization was 12.9% at present indicating high volatility in the crypto. With a live market capitalization of $1.07 Billion Fantom ranks 59th in the crypto space.
Fantom is a smart contract platform providing decentralized finance (DeFi) services to the developers. It is an open source platform designed as an alternative to Ethereum. Out of 3.1 Billion FTM tokens, nearly 2.8 Billion FTM tokens are currently under circulation.
Fantom Price Forecast: Bulls Initiate A Recovery
Moreover, the recent session has observed a consistent buying from the lows indicating the price heading for a recovery. The increased OI data and transaction volume suggests the domination of the bulls in the short term.
However, the long term trend outlook still favors a bearish side as the price lags 45% below the 200 day exponential moving average. As of now, the FTM price has surpassed the 20 day EMA suggesting a bullish outlook in the short term.
Moreover, the daily chart highlights the formation of a falling wedge pattern with the price currently established near the higher boundary. On the higher side, if the price resumes its recovery above the $0.39 level, it may continue to rise towards the next short term target of $0.45.
However, if the price fails to initiate a breakout of the falling wedge pattern and suffers rejection from the higher levels, it may slide towards the lower boundary of the wedge at $0.29 level.
Meta Description: Fantom price gained traction and surged higher after the bulls initiated a recovery
The Open Interest contracts have jumped by 50% to $75 Million indicating an accumulation at the lower levels.
The transaction volume has surged from $50 Million to $200 Million a day in the recent sessions.
Fantom price gained traction and surged higher after the bulls initiated a recovery from the lows. At the time of writing, Fantom was exchanging hands close to $0.38 level recording a positive intraday development of nearly 5%.
Along with a strong rebound in the price, there are few on-chain metrics which have recorded a notable shift in the recent sessions. The investors sentiment seemed to be improving as the OI data indicated an inflow.
Also, the transaction volume has improved indicating a heightened demand and increased user engagement. However, the long term trend outlook still lies on the bearish side adding a risk of rejection in the price at the higher levels. Let's analyze it and try to get a clear picture about the possible price trajectory.
OI Data Reveals A 50% Inflow
In the 1st week of August, Fantom price noted a sharp downturn following the broader market crash. During this period, the Open interest contracts dropped to $47 Million.
The Open interest contract is an on-chain metrics which monitors the total number of open positions in a specific cryptocurrency contract. It also indicates the liquidity and interest in a particular crypto contract.
<iframe title="Santiment Chart: Total Open Interest in USD (FTM), Price (FTM)" width="800" height="425" src="embed.santiment.net/chart?ps=fantom&pt=FTM&df=2024-02-17T18:29:59.234Z&dt=2024-08-17T18:29:59.234Z&emcg=1&emhwm=1&wm=total_open_interest;price_usd&wax=0;1&wc=#FF5B5B;#26C953&ws={"node":"area"};" scrolling="no"></iframe>
Source: app.santiment.net
As per the data obtained from an on-chain analytics website app.santiment.net, the number of open contracts saw an impressive 50% growth a week. The OI data surged from $50 Million to $75 Million indicating an improvement in the Investors confidence.
Fantom Crypto Volume Analysis
The volume analysis highlights that the transaction volume has grown from $50 Million to $200 Million in a week. A strong rise in the volume indicates a heightened demand in the crypto.
<iframe title="Santiment Chart: Price (FTM), Volume (FTM), Price (FTM) MA(50), Price (FTM) MA(200)" width="800" height="425" src="embed.santiment.net/chart?ps=fantom&pt=FTM&df=2024-02-17T18:29:59.234Z&dt=2024-08-17T18:29:59.234Z&emcg=1&emhwm=1&wm=price_usd;volume_usd;[2;price_usd;MA50];[2;price_usd;MA200]&wax=0;1&wc=#33bd5d;#D2D6E7;#FF5B5B;#FFCB47&ws={"interval":"1d","node":"candle"};;;" scrolling="no"></iframe>
Source: app.santiment.net
Moreover, the volume to market capitalization was 12.9% at present indicating high volatility in the crypto. With a live market capitalization of $1.07 Billion Fantom ranks 59th in the crypto space.
Fantom is a smart contract platform providing decentralized finance (DeFi) services to the developers. It is an open source platform designed as an alternative to Ethereum. Out of 3.1 Billion FTM tokens, nearly 2.8 Billion FTM tokens are currently under circulation.
Fantom Price Forecast: Bulls Initiate A Recovery
Moreover, the recent session has observed a consistent buying from the lows indicating the price heading for a recovery. The increased OI data and transaction volume suggests the domination of the bulls in the short term.
However, the long term trend outlook still favors a bearish side as the price lags 45% below the 200 day exponential moving average. As of now, the FTM price has surpassed the 20 day EMA suggesting a bullish outlook in the short term.
Moreover, the daily chart highlights the formation of a falling wedge pattern with the price currently established near the higher boundary. On the higher side, if the price resumes its recovery above the $0.39 level, it may continue to rise towards the next short term target of $0.45.
However, if the price fails to initiate a breakout of the falling wedge pattern and suffers rejection from the higher levels, it may slide towards the lower boundary of the wedge at $0.29 level.
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