- Fantom has failed to ignite investor interest in recent months, but as one analyst points out, its TD Sequential indicator signals a buying opportunity, with over 10% gains expected.
- Other indicators prove that investors are stockpiling FTM, with the volume on exchanges dropping significantly and the number of total investors spiking.
Once one of the mainstays in crypto, Fantom has dropped out of the top 50, and its volume barely hits $200 million nowadays. However, as one analyst points out, FTM could be one of the best investments in the short term, with one critical indicator showing that it’s time to pile up on the token.
At press time, Fantom is trading at $0.5014, gaining a measly 1.5% in the past 24 hours for a $1.4 billion market cap.
Fantom’s trading volume shows a token that has lost favour with investors. In the past day, just over $108 million worth of FTM changed hands. This was below less than a quarter of Dogecoin’s volume and ranked lower than some of FTM’s peers like Uniswap, Blur, PancakeSwap and The Sandbox.
In the past month, FTM’s trading volume only broke the $300 million mark once on December 22 and has averaged $100 million in that time.
However, despite the lacklustre trading volume, FTM has gained 55% since December 2nd and set an intra-month high of $0.5638.
And according to one analyst, it might be time to stock up on Fantom. Ali Martinez pointed out that the Tom DeMark Sequential indicator presents a buy signal. Ali told his 39,000 followers on X that if FTM holds above $0.45, the token will rise towards $0.50 and, eventually, hit $0.55.
(Image courtesy of Ali Martinez on X)
Since then, the analyst has been vindicated, with FTM hitting $0.50 and seemingly on its way to the $0.55 level.
Time to Stockpile Fantom?
Aside from the TD Sequential indicator, other signals prove that interest in Fantom has been on a steady rise. Santiment data shows that the net demand for FTM has been increasing in recent days.
The amount of FTM on exchanges has also decreased significantly since December 26, with the tokens held on private wallets and other storage devices on the rise. A token’s withdrawal from exchanges usually indicates that investors plan on holding it for a significant amount of time.
Another key metric is that Fantom’s price rally is being led almost purely by retail investors. The number of whale transactions (usually any transaction above $100,000) has dipped significantly since December 26 (represented by the pink bars at the bottom of the above chart).
According to Ijaz Awan, the critical condition for Fantom if it’s to sustain its rally is to hit a higher high after its retracement in the past week.
🎥$FTM!! This FANTOM Price Target Will SHOCK You! [2024] 👇 pic.twitter.com/W8JrRr0GnC
— Ijaz Awan (@realijazawan) January 1, 2024
On December 26, FTM hit $0.56 after a consistent uptrend from $0.3169. It then retraced but has picked up momentum again in the past two days. If FTM’s rally is to continue, this mini-rally must exceed the $0.56 level, says the analyst.
Ijaz predicts that the token will hit $2.20 in the medium term, which is around 400% gain.
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