Fantom (FTM) has defied a sluggish market, climbing higher in the last 24 hours. Key indicators like the Average Directional Index (ADX) and Exponential Moving Averages (EMAs) suggest strong bullish momentum. However, slowing whale activity raises questions about how far FTM’s rally can go.
FTM Trend Strength Hits High Levels
The ADX for Fantom has jumped to 47 from just 12 in the past four days. This sharp increase highlights the strength of FTM’s current trend.
- What is ADX?
The Average Directional Index measures trend strength, regardless of direction, on a scale of 0 to 100.- Values above 25 indicate a strong trend.
- Readings over 40 suggest very strong momentum.
FTM’s ADX of 47 signals a powerful uptrend, backed by rising buying pressure. Historical data shows that FTM’s ADX can exceed 50 during periods of heightened momentum. If this trend continues, FTM could experience further gains.
Whale Accumulation Slows Down
Fantom’s large holders, or “whales,” increased their holdings earlier this month, with wallets containing 1,000,000–10,000,000 FTM growing from 69 to 74 between November 15 and November 21.
- Key Observations:
- Whale activity has since stabilized, with wallet numbers fluctuating between 72 and 74.
- This suggests whales are maintaining their holdings but are no longer aggressively buying.
Reduced whale activity could signal a pause in FTM’s bullish momentum. Without new market catalysts, this stabilization might lead to reduced price volatility in the short term.
Price Prediction: Can FTM Hit $1.22?
Fantom’s EMA lines remain bullish, with short-term EMAs above long-term ones. This alignment reflects strong upward momentum.
- Bullish Scenario:
If buying pressure persists, FTM could gain another 20% and test $1.22, its highest price since March. - Bearish Scenario:
A trend reversal might push FTM toward key support levels:- Initial support: $0.77 and $0.58.
- Strong support: $0.35, which would mark a significant 66% correction.
Conclusion
Fantom’s price surge is supported by strong technical indicators, but whale activity suggests caution. Whether FTM breaks past $1.22 or tests lower support will depend on market momentum and external catalysts.
