Fantom Soars 63% in a Week as Active Addresses Hit New Highs

Key Insights:

• Fantom rallies 63% in a week, defying market trends with growing active blockchain addresses.
• Bullish breakout in FTM charts suggests potential for further gains, with resistance at $1.20.
• Upcoming “Sonic” upgrade aims to revive Fantom’s DeFi dominance and network scalability.

Fantom (FTM) has climbed 63% over the past week, with the token trading at $1.04 at press time. This surge is accompanied by a sharp increase in daily active addresses on the blockchain, suggesting growing interest in the smart contract platform. 

Over the last 24 hours alone, FTM gained 5.15%, while its trading volume rose by 68% to $1.49 billion, pointing to strong bullish sentiment among traders.

Fantom’s market capitalization now stands at $2.9 billion with a circulating supply of 2.8 billion tokens. Analysts note that the increase in utility and user activity has historically preceded market tops, prompting some to advise caution as new investors enter the space.

Growing Adoption Drives Fantom’s Price Rally

Recent data shows Fantom’s adoption metrics are on the rise, with daily active addresses reaching new heights. This surge in activity is often considered a signal of increased user engagement, as more participants join the network to explore its decentralized finance (DeFi) and smart contract capabilities.

Blockchain analytics firm Santiment has observed a direct correlation between rising address activity and price movements. However, the firm warns that these activity spikes often cool off, leading to potential price corrections. Traders are encouraged to monitor address activity closely, as changes could indicate a shift in market sentiment.

Source: X

Despite recent volatility in the broader cryptocurrency market, FTM has managed to maintain an upward trajectory, outperforming many altcoins. Analysts attribute this resilience to growing FOMO (fear of missing out) among traders, driving both trading volume and demand for the token.

Technical Breakout Suggests Further Upside Potential

On the technical front, Fantom has achieved a bullish breakout from a descending triangle pattern on its long-term price chart. This pattern, which typically signals the continuation of an existing trend, has generated optimism among market analysts. The breakout occurred after a period of consolidation, suggesting renewed momentum to the upside.

Current support for FTM lies at the lower trendline of the triangle, while the token has surpassed its resistance level at $1.05. If Fantom sustains its current trajectory, the next resistance points are projected at $1.20, $1.62, and $2.20. 

Market analyst Captain Faibik noted that this breakout could lead to “15x gains” over time, potentially pushing the price to $15 during the next market cycle.

Source: X

However, experts caution that the sustainability of this upward trend will depend on broader market conditions and Fantom’s ability to maintain its network activity levels.

Fantom’s Upcoming “Sonic” Upgrade Could Shape Long-Term Outlook

The upcoming “Sonic” upgrade is expected to play a critical role in Fantom’s development and its positioning within the DeFi ecosystem. During the 2021 bull run, Fantom’s total value locked (TVL) in DeFi peaked at $15 billion but has since fallen to $320 million. The new upgrade aims to address this decline and boost Fantom’s appeal among DeFi users and developers.

The development team behind Fantom has stated that the upgrade will enhance the platform’s scalability and efficiency, potentially attracting more projects and users to its ecosystem. This could help Fantom regain its standing in the competitive DeFi space and sustain the recent price momentum.

While market participants remain optimistic, the token’s performance will largely depend on how the network’s fundamentals evolve in the coming months.

Fantom’s recent rally has occurred in defiance of a broader market correction, with Bitcoin and other altcoins facing downward pressure. This decoupling has attracted attention, as it suggests Fantom may be benefiting from unique factors such as its network activity and upcoming technological upgrades.

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