Fantom (FTM) Shows Potential for Price Movement as Profitable Holders Increase
Fantom (FTM) has experienced a significant increase in the percentage of profitable holders, reaching 55%. This milestone has historically been followed by a dramatic 858% price increase in less than four months, indicating the potential for an upcoming price movement.
Recently, there has been a notable rise in the FTM supply held by traders, suggesting the possibility of future volatility. Additionally, the current positioning of FTM Exponential Moving Average (EMA) lines provides a neutral outlook. While the short-term EMA lines are positioned above the long-term lines but below the price line, this indicates a mixed signal regarding the asset’s immediate direction.
FTM Profitable Holders Reach a Sweet Spot
After the recent increase in FTM price, over 55% of FTM holders are now in profit. This situation hasn’t been seen since August 2021 when more than 50% were profitable with FTM price under $1. During that period, FTM value surged from $0.31 to $2.97 within three months, marking an extraordinary price growth of 858%. This historical precedent suggests the potential for significant price movements following shifts in the percentage of profitable holders.
The historical break-even price metric refers to the average price at which current holders have purchased their tokens. If profitable holders decide to hold their FTM, expecting the price to surpass $1, they could further increase their profits. Similarly, holders losing money at current price points may also hold their FTM, anticipating a future surge in price.
Supply In The Hand Of Traders Is Increasing
From March 7 to March 18, there was a significant increase in the volume of FTM held by short-term traders. The supply soared from 95 million to an impressive 206 million, representing a growth of 116%. This shift towards traders holding FTM suggests a potential increase in short-term trading activities, which often precedes heightened price volatility.
Examining the period from February 18 to March 4, there was noticeable growth in the trader-held supply of FTM. The supply climbed from 61 million to 83 million, coinciding with a significant surge in price from $0.41 to $0.68, a 65% increase. This further illustrates the relationship between the supply dynamics of FTM among different investor classes and its market price.
FTM Price Prediction: Back To $1 Next?
An analysis of the FTM 4-hour chart shows a key resistance level at $0.98. If this resistance is broken, the FTM price could continue its upward trajectory and potentially reach values above $1 for the first time since April 13, 2022. However, consolidation is also possible as both short-term EMA lines are currently below the price.
The Exponential Moving Average (EMA) is a technical analysis tool used to smooth out price fluctuations and identify trends in the market. The crossover of short-term EMAs above long-term EMAs suggests a shift towards an uptrend in the short term. While recent price movements are pushing the short-term average upwards, all EMAs are still below the price line, indicating a possible overall downtrend or consolidation.
The FTM price has strong support at $0.54. If this support fails to hold, there could be further downward movement towards $0.48 or even $0.41, potentially resulting in a 55% price correction.
Hot Take: Potential for Significant Price Movement Ahead
Based on the notable increase in profitable holders and the rise in FTM supply held by traders, there is a potential for significant price movement in the near future. The historical precedent of an 858% price increase following a similar milestone suggests the possibility of a bullish breakout for FTM.
However, the current positioning of EMA lines and the key resistance level at $0.98 indicate that consolidation or a short-term pullback is also possible. Traders should closely monitor these factors and consider their risk tolerance before making any investment decisions regarding FTM.
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