The FTM price has rebounded by 60% since dropping to $0.31 a month ago. All-chain data reveals potential for a long-term rally. With Fantom Owners Doubling Over Long Term, Is $0.70 A Viable Price Target?
On April 7, Fantom a community suggestion To reduce the verification requirements of the validator. If passed, the validator limit will be reduced from 500,000 FTM to 50,000 FTM. Optimistic investors expect that this will enhance decentralization and increase the number of staking participants across the network.
On-chain data and recent price action suggest that long-term coin holders and crypto whales now appear to be making potential price gains from the network-wide rally in the accumulated coins.
Fantom whales are poised for more wins
Fantom whales seem to double down on their long positions, according to data collected by Santiment. The wave of FTM accumulation started in mid-January among whales with between 10 million and 100 million coins. Between January 18th and April 4th, they increased their balances by 470 million FTM.
Notably, between April 4th and April 12th, they added another 20 million coins worth approximately $10 million as they continued to accumulate upwards.
When whales continually accumulate cryptocurrency for long periods of time, it may inspire other retail investors to become optimistic.
Likewise, the long-term accumulation trend among network participants is another important bullish signal revealed by the Fantom on-chain data.
The average coin age indicator across the Fantom Network has trended further upward since April 3, according to Santiment data. After a short drop, the following chart shows how the FTM’s average coin age grew by 15% from 47.72 to 54.45 between April 2nd and April 12th.
The average coin life is calculated by multiplying the number of coins on the network by the number of days those coins have been held at their current addresses. Increasing values mean that long-term participants keep their coins.
Given the aforementioned wave of accumulation among the whales, the recent bullish trend in the average age of the coins may soon lead to a higher price of the FTM.
FTM Price Prediction: Next $0.70 High?
IntoTheBlock’s break even price distribution below indicates that the FTM could rally towards $0.72 before encountering significant resistance.
The FTM could embark on an upward rally if it can break the current resistance at 2,400 addresses which bought 68 million coins at around $0.52. If that happens, the price could rise towards $0.72. However, the 8,000 tie-breaker addresses containing 218 million tokens could be sold once the FTM approaches $0.72.
However, the bears could negate this position if the FTM slips below $0.47. Although a good part of the 2400 addresses that bought 68 million coins here could support the price.
But if this support can’t prevent a decline, the FTM could pull back towards its next big support at $0.43.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
