- Fantom, a promising cryptocurrency, has potential to surge by 234% due to a technical pattern known as Hidden Bullish Divergence.
- This potential price spike is especially notable as FTM has lagged behind other altcoins like Solana and Toncoin this year.
- Recently, despite some short-term dips, Fantom has shown volatility with room for recovery, according to analyst Javon Marks.
Fantom is poised for a potential 234% rally, driven by technical indicators and strategic investor movements. Discover the key factors influencing its price trajectory.
Fantom’s Potential Upsurge to $3: Analysis and Insights
In recent trading sessions, Fantom (FTM) has been spotlighted for its underwhelming performance compared to its altcoin counterparts. While Solana and Toncoin have doubled their values this year, FTM has only increased by 40% year-to-date. Currently trading at $0.3393 after a 5.7% decline, Fantom experienced a strong performance the previous week, climbing over 15% and briefly hitting above $0.36 on August 11th. The discussion around Fantom’s price trajectory recently intensified following remarks from cryptocurrency analyst Javon Marks, who suggested that FTM could see a 234% increase due to a Hidden Bullish Divergence seen on its price charts.
Understanding the Hidden Bullish Divergence
According to Marks, Fantom’s charts indicate a Hidden Bullish Divergence, a pattern where the asset’s price records a higher low, while the oscillator (such as an RSI) marks a lower low. This discrepancy tends to suggest that despite the recent price drops, the underlying momentum may be strongly positioned for an upward movement. This setup is rare but often fruitful for predicting significant price rallies. If Marks’ projections hold true, FTM could potentially soar to $3, essentially erasing its recent declines and setting newer, higher benchmarks.
Historical Patterns and Future Projections
Historical data supports this optimistic outlook. Marks notes that Fantom has previously shown substantial price recoveries following similar chart formations. For instance, prior retracements have often been precursors to major upward rallies. “Fantom’s recent confirmation of a Hidden Bullish Divergence, although followed by a retracement, aligns with previous patterns that preceded major price recoveries,” Marks explained in a recent post. This suggests not just a short-term rebound, but potentially a robust long-term upward trajectory, with the $3.0053 mark being a critical breakout level.
Fundamental Indicators: Whale Transactions and Open Interest
Beyond technical analysis, it is crucial to consider Fantom’s fundamental indicators. For instance, the number of large transactions, often referred to as whale transactions, decreased significantly from over 20 major transactions last week to just 6 this week. This reduction may signal a temporary lull in investor confidence or a consolidation phase before a potential rally. Additionally, open interest in FTM—measuring the total number of outstanding derivative contracts—has witnessed mixed trends. Although there has been a 9.2% decrease in open interest, indicating a cooling off from leveraged positions, the open interest volume increased by 47.59%, suggesting new investments flowing into the market as traders anticipate future price gains.
Conclusion
In summary, while Fantom has recently underperformed compared to other altcoins, technical indicators and historical data provide a promising outlook for a significant rally. The Hidden Bullish Divergence, along with strategic movements in whale transactions and open interest, points towards a potential price surge to $3. Investors should watch these indicators closely, as they could signal an imminent rally that could redefine FTM’s market performance.
