Fantom (FTM) is capturing attention in the decentralised finance (DeFi) space with its innovative technology. The platform’s unique Direct Acyclic Graph (DAG) smart contract framework enhances scalability, making it a strong contender in the market.
Over the past week, FTM has experienced a 16.19% price increase despite a minor 0.03% dip recently. Currently, with a market capitalisation of $1.59 billion, FTM is trading at $0.5657. Proponents attribute this growth to internal network developments.
Sonic Upgrade: Paving the Way for Enhanced Performance
Fantom’s upcoming Sonic upgrade, anticipated between November and December 2024, is set to introduce the Fantom Virtual Machine (FVM) and an improved Lachesis consensus mechanism. These advancements are targeted at significantly boosting network performance. Currently, Fantom processes around 30 transactions per second (TPS). However, post-upgrade expectations show an increase to over 2,000 TPS, with finality times reducing to approximately one second. Such improvements are expected to attract more developers and users to Fantom’s platform.
Chart Analysis: Bullish Patterns Emerge
Technical analysis suggests potential upward movement for Fantom, highlighted by two bullish patterns: the falling wedge and inverse head and shoulders. The recent breakout from the falling wedge indicates a possible end to the prolonged downtrend, with traders eyeing targets of $0.80 initially and $1.20 subsequently.
Additionally, an inverse head and shoulders pattern signals another possible price reversal. A breakout above the $0.56 neckline could further cement gains, aligning with the falling wedge’s projections. The RSI and MACD support this bullish outlook, showing strong buying pressure and momentum.
Several technical indicators, including the Relative Strength Index (RSI) near 66.82, suggest strong buying interest. Though the RSI nears overbought territory, it indicates potential for further upward movement. The MACD’s bullish crossover supports growing momentum, signalling increasing buying pressure. Analysts recommend monitoring these indicators closely.
Market Data and On-Chain Activity
On-chain data provides insight into Fantom’s market activity. Notably, 43.59% of FTM addresses are profitable, while 54.20% remain at a loss, according to IntoTheBlock. This distribution suggests a resistance zone between $0.503 and $0.577, which must be surpassed for price escalation.
DefiLlama reports a Total Value Locked (TVL) of $93.67 million in Fantom-based DeFi, illustrating the capital constricted within these protocols. The network’s stablecoin market cap stands at $337.37 million, with a 24-hour volume of $17.69 million.
Over the past 24 hours, Fantom DeFi protocols have experienced notable inflows of $781,788, signifying ongoing interest in its ecosystem.
Community Sentiment and Expert Opinions
Community sentiment towards Fantom remains positive, with many expecting significant upward momentum. Pseudonymous trader Mister Crypto forecasts a substantial price surge, citing network developments as the catalyst for growth. He states, “I believe it will eventually see a massive leg up. It might take some time, but I think it will happen eventually.”
Fantom’s strategic advancements, coupled with its community support, highlight a cautiously optimistic outlook. However, investors should remain vigilant and considerate of potential market risks.
Comparative Analysis: Positioning Among Competitors
In the rapidly evolving DeFi landscape, Fantom’s technological advancements position it competitively against peers. Following the Sonic upgrade, Fantom is expected to become one of the fastest blockchain networks available, likely appealing to a wide range of developers and users.
This enhanced capability could allow Fantom to capture market share from competitors, attracting projects seeking scalable and efficient platforms.
Investment Strategies and Risks
As Fantom’s potential breakout looms, investors might consider short-term and long-term strategies to capitalise on expected volatility and growth. While the bullish outlook is promising, it is crucial for stakeholders to remain informed about market fluctuations.
Investors should weigh the risks of entering at current levels, considering the possible resistance zones and market dynamics. Diversification and risk management remain essential in navigating complex crypto markets.
Conclusion: Fantom’s Future in Perspective
Fantom’s innovative advancements and emerging market position set the stage for a potentially prosperous future. Investors and stakeholders should watch developments closely as the Sonic upgrade approaches, and be prepared for possible market shifts.
Fantom’s imminent upgrades and current market positioning suggest a promising outlook. As the network undergoes enhancements, anticipation builds for a potentially significant breakout. Retaining vigilance and informed strategies remains essential for navigating the evolving landscape.
