Fantom price prediction – Key levels to watch after 48% November gains

Fantom’s MVRV ratio has increased to 1.59, its highest level in over three months.
FTM has also broken out of a broadening wedge pattern on its one-day chart, suggesting further gains

As a seasoned crypto investor with a knack for spotting trends and a portfolio that has weathered numerous market cycles, I find myself intrigued by Fantom’s current performance. The MVRV ratio at 1.59, its highest in over three months, coupled with the breakout from a broadening wedge pattern on the one-day chart, paints a promising picture for FTM.

Currently, Fantom [FTM] is being exchanged for approximately $0.957, marking an increase of 8% over the past day. Additionally, trading volume has significantly spiked by over 30%, according to CoinMarketCap.

In November, FTM has been one of the leading altcoins, experiencing a 48% increase over the past month. This significant growth has resulted in an uptick in the Market Value to Realized Value (MVRV) ratio for its token.

According to information from IntoTheBlock, the MVRV (Maker’s Value to Realized Value) ratio for Fantom has been steadily increasing and reached a three-month peak of 1.59. This means that on average, Fantom token (FTM) holders currently find themselves with a profit margin of approximately 59%.

An increasing MVRM ratio indicates that more and more Fetch.Token (FTM) holders are moving into profit territory. Additionally, this indicator has not yet surpassed its overvalued threshold, implying there’s potential for further expansion or growth.

Keep an eye on the MVRV ratio if it spikes beyond 2, as this might indicate that FTM is getting overpriced, potentially leading to a shift in its price trend.

Wallets in profit surge 8% in 7 days

The rising profitability among Fantom wallets can further be seen in the In/Out of the Money metric. In the last seven days, the percentage of profitable wallets has increased from 50% to 58%.

As an analyst, I’m observing a significant shift in investment trends. The proportion of wallets experiencing losses has decreased from 46% to 39%, suggesting a gradual recovery or continued optimism among investors. This reduction aligns with the bullish sentiment that profitability among investors seems to be fostering.

During this period, approximately 22 million FTM tokens were bought by around 4,580 different accounts as the price ranged from $0.98 to $1.24.

These wallets may potentially slow down the upward trend of FTM, since an increase towards these prices might stimulate increased selling due to profit-taking.

FTM breaks out of a broadening wedge pattern

On the daily graph, Fantom exhibited a breakout from a widening triangle formation, which was signified by increased trading activity as demonstrated by the spike in the green volume bars, suggesting that the upward momentum might persist further.

The bullish momentum is further seen in Moving Average Convergence Divergence (MACD). At the same time, the Chaikin Money Flow (CMF), with a positive value of 0.23 shows that buyers are in control.

Should Fantom’s upward trend persist with these favorable indicators lining up, it might reach the 1.618 Fibonacci level, which is approximately $1.268. This scenario could potentially trigger more buying activity and a surge in market optimism, possibly leading to an additional 33% increase.

However, on the derivatives market, traders appear to be taking short positions on Fantom.

Read Fantom’s [FTM] Price Prediction 2024–2025

To put it simply, the Long/Short Ratio, which had been increasing for the past week, currently stands at 0.92 after a decrease from its previous level of 0.97.

As an analyst, I observe a decrease in this particular ratio, which indicates that derivative traders are expressing bearish sentiments towards Fantom by establishing leveraged short positions. This suggests they anticipate a potential price decline for the cryptocurrency.

2024-11-26 01:45

Wallets in profit surge 8% in 7 days

FTM breaks out of a broadening wedge pattern

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