According to CoinMarketCap data, the price are outperforming amid the entire crypto market turmoil after the EU voted to ban unhosted wallets. At the time of publication, trading at 1.63 USD increased by more than 14% on the day.

Source: TradingView

Potential reason for Fantom price increase

Three potential reasons could include positive ecosystem news, buying pressure from whales, and favorable technical structure.

Positive news about the ecosystem

Fund recently announced a 335 million dong incentive program New partnership with Gitcoin Grants. In addition, the upcoming Fantom protocol upgrades, deployment v3 and other positive news that could contribute to the price increase

In the recent updates, three major upgrades will be rolled out in the near future to further improve the Fantom network. Fantom also announced sponsorship of F1 and F2 drivers Pietro and Enzo Fittipaldi. As part of the sponsorship, the Fantom logo will be featured on Pietro's Le Mans European race, on LeMans 24-hour helmets and apparel, and on Enzo's Formula 2™ throughout the 2022 season. In addition, the two brothers will cooperate with Fantom to introduce to their large number of fans Fantom. .

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Top currency market v3 has also appeared on Fantom recently. Alpha Homora V2, multi-chain lending protocol and largest leveraged yield farming protocol, also just launched on Fantom.

Whale buys strongly

According to Whalestats, Fantom is currently the token most bought by the top 100 whales.

The source: WhaleStats

Favorable technique

FTM/USD 1D chart. Source: TradingView

Fantom (FTM) has dropped in the previous weeks following the departures of developers Andre Cronje and Anton Nell. This caused the FTM price to reach oversold conditions, leading to a strong bounce after hitting key support.

What is next?

Fantom suffered a sharp correction that started in late January and hit a yearly low of $1.04 on March 14. Tokens seems to have formed a local bottom as its price has rallied more than 50% since then. Although there are a few obstacles ahead, the FTM may have enough power to go further.

From a technical perspective, it looks like FTM has encountered stiff resistance following the recent rally. The 50-day moving average at $1.54 seems to be keeping the FTM low, preventing it from making higher highs. The decisive daily close above this resistance and the 61.8% Fibonacci retracement at $1.63 could encourage traders on the sidelines to return to the market.

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After breaking such a key resistance area, a spike in buying pressure could push FTM towards the next supply zone between the 50% and 38.2% Fibonacci retracement levels. These key resistances are at $1.87 and $2.15, respectively.

Even so, FTM needs to close above the $1.54-$1.63 resistance wall to maintain its bullish view. Failure to overcome this important hurdle could lead to a spike in profit taking, pushing FTM down. In that case, A drop to the recent low at $1.04 is likely to attempt to form a double bottom.

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