- Fantom price has been slowing down its ascent as it trades around the $0.900 level.
- A retracement to daily support at $0.752 and $0.720 are key accumulation levels is likely.
- FTM could dip into the weekly imbalance, extending from $0.547 to $0.441 before proceeding higher.
- A breakdown of the $0.567 support level will invalidate the bullish thesis for FTM.
Fantom (FTM) price trades at $0.901 after rallying 119% in the past three weeks. As the wider crypto markets sells off, this ascent has paused. However, technical indicators suggest that its rally will likely resume soon, pushing FTM higher.
Also read: Fantom price rallies after FTM Foundation’s legal win against Multichain Foundation
FTM co-founder Andre Cronje’s comeback
The main reason for this development could be attributed to Andre Cronje, the co-founder of the Fantom Blockchain, who has been active on social media platform X. Typically, the promotion of projects through influencers on social media results in high volatility for the underlying asset. Moreover, Cronje announced on March 15 that the FTM blockchain achieved a throughput of 10,000 Transactions Per Second (TPS).
10k tps achieved. Publicly verifiable. Can test for yourself, on public infrastructure. No need for “trust me bro”. Available today, no need to wait. And we havent even started with the parallel execution meme. https://t.co/q2QRKM9WXe
— Andre Cronje (@AndreCronjeTech) March 15, 2024
Moreover, Andre Cronje compared the capabilities of the Fantom Blockchain, which overshadows the likes of other modular blockchains with parallelized Ethereum Virtual Machines (EVMs) like Sei and Sui. He added that the upper limit of base EVM TPS is around 200, which pushes up to 240 with the latest developments like parallelized EVMs. However, FTM’s Fantom Virtual Machine (FVM) has an upper limit of 30,000 TPS, and with the inclusion of parallelized EVMs, this number is up to $34,500.
Cronje makes parallelized EVM and modular blockchain hype look like a thing of the past by noting, “parallelism isn’t even in our top 3 of tech improvements by net gain at Fantom.”
Fantom price looks for a window of opportunity
Fantom price has shown its willingness to climb higher in the past three weeks. After breaching the $0.434 resistance level, FTM soared 119% in three weeks, showing the markets’ willingness to price the altcoin higher. Therefore, any dips will likely be scooped up by investors, which indicates that the bias for Fantom is bullish.
Due to Bitcoin’s recent correction, most altcoins have registered massive daily losses, with the crypto market liquidations reaching north of $700 million on March 19. As a result, FTM has also noted short-term pullbacks. If BTC is not done with its correction, it could drag altcoins further down.
Hence, investors should be patient when trying to time a reversal for the ongoing sell-off. Fantom price could revisit the $0.752 and $0.720, which are key accumulation levels on lower timeframes, before recovering. On the weekly chart, however, the high probability reversal zone is the $0.547 to $0.441 imbalance zone.
To sum it up, a dip into the daily levels or the weekly imbalance are two places investors should consider accumulating FTM.
The result of a bounce at any of these two levels could see Fantom price trigger an uptrend to the $1.29 weekly resistance level. This move would constitute a nearly 52% rally from the $0.752 level and a 160% increase from the upper limit of the weekly imbalance.
FTM/USDT 1-week chart
The fundamental developments, coupled with the bullish outlook of the markets, have resulted in the recent uptrend for Fantom price. But if the market deteriorates, altcoins could continue to bleed.
In such a case, if Fantom price produces a weekly flip of the $0.567 support level into a resistance, it will produce a lower low and invalidate the bullish thesis for FTM. This development could soon be followed by a 21% crash to the next key area of strength at $0.434.
