Fantom’s native FTM token saw a dramatic 18% price surge on December 14th, propelling it to highs not seen since last May. This sudden uptick appears driven by a revival of investor interest and accumulation of FTM holdings.
Keypoints
- FTM price surged 18% on December 14, reaching its highest level since May
- The price increase was driven by growing demand and accumulation of FTM tokens
- Indicators like MACD, CMF, RSI, and OBV have turned bullish, signaling revived buying pressure
- The ratio of profitable to losing FTM transactions over 7 days is currently 2.5 to 1
- Fantom introduced ecosystem upgrades like its gas monetization program to boost activity
Analysis of key indicators paints a picture of growing demand and buying pressure behind FTM’s latest push upwards. On December 6th, FTM’s MACD indicator underwent a bullish crossover, with its short term moving average rising above the longer term trendline. This signaled the return of bullish momentum.
Likewise, FTM’s Chaikin Money Flow has climbed into clearly positive territory, indicating money is flowing into the market for the token. The Relative Strength Index now also sits at nearly overbought levels, suggesting strengthened enthusiasm.
Most tellingly, FTM’s On-Balance Volume metric recently touched an all-time record. As it measures buying against selling pressure, this remarkable high OBV points strongly to investors accumulating token holdings.
This accumulation fits with profitability ratios. Over the past 7 days, 2.5 profitable FTM transactions are occurring for every losing trade. With growing balances and trading success, investors seemingly have renewed belief in Fantom’s value proposition after months of poor performance.
Fantom suffered from the spillover effects of the Multichain hack in summer 2022. The catastrophic exploit shattered user trust and drained liquidity from Fantom’s interconnected DeFi ecosystem almost overnight. FTM plunged from all time highs as optimism evaporated.
Yet the Fantom Foundation refused to let adverse winds extinguish their vision for a fast, affordable and open network for next generation digital transactions. Beyond emergency measures to support those impacted, Fantom developers have focused energy on enhancing system security and introducing incentives that drive activity.
One example is a recently launched pool of over 500,000 FTM tokens as grants for gas monetization projects. Such schemes incentivize developers to build on Fantom while bootstrapping adoption. If sustained, this approach may organically rebuild network effects.
Judging from increasing investor demand for FTM in recent weeks, the protocol’s native token seems to be turning a corner. While more progress lies ahead, upbeat technicals and profit ratios endorse gathering optimism behind Fantom’s decentralized ecosystem for payments and decentralized finance.
For long term holders hopes of new all time highs feel firmer following FTM’s latest 18% single-day surge.
The post Bulls Return for Fantom’s FTM as Price Reaches 7-Month High appeared first on Blockonomi.
Source: https://blockonomi.com/bulls-return-for-fantoms-ftm-as-price-reaches-7-month-high/
