Key Takeaways:
- Fantom prices gained over 85% in Oct.
- FTM prices come when other top cryptocurrencies saw restricted growth awaiting U.S’s first Bitcoin Futures ETF.
NEW DELHI (CoinChapter.com) — Ethereum killers are gaining ground. One blockchain platform that also prides itself as the ‘Ethereum killer,’ Fantom, surpassed the rally posted by Bitcoin and Ethereum this month.
BTC gained 40.86% in Oct and is now within touching distance of its ATH of $65,087. Ethereum also enjoyed ‘Uptober,’ gaining 24.76% in less than three weeks. However, Fantom swelled by nearly 85% during the same time frame, going from $1.20 to $2.23 in 18 days.
Fantom’s current bull run also saw FTM reach its ATH of $2.54. Though the token’s rally stuttered afterward, FTM prices have consolidated above support near its 26-day Exponential Moving Average trendline at $1.81.
Meanwhile, Fantom Foundation recently announced Fantom DC, dubbing it the ‘Biggest Devcon,’ or Developer Conference. The event invites developers to explore and develop projects on Fantom’s blockchain network.
Fantom Price Charts
Apart from Shiba Inu, which Musk-ed its way to 400% gains in the first few days of Oct before retreating, Fantom has outpaced all other top-35 cryptos in terms of monthly gains. FTM ended the previous week recording gains of 35.13% between low($1.773) to high($2.396) levels.
FTM prices are trading above their short-term (50-day) and long-term (200-day) MA trendlines, making Fantom bullish across all time horizons. However, FTM needs to consolidate above $2.36 immediate resistance for prices to continue their upwards rally.
The resistance at $2.36 has capped all upside movements for FTM. If bulls manage to push prices above immediate resistance, the next target would be at $2.46, about 8 cents below the Fantom token’s ATH. A sustained buying action might push prices higher, but resistance near $2.61 would likely cap any further upside movement.
On the other hand, a downtrend would likely drop prices to support $2.09. Further downside movements might bring the support at $1.94 into play. Finally, a large-scale sell-off, maybe due to profit-taking, might force bulls to rally near support from the 26-day EMA at $1.81.
Also Read: Bitcoin resumes rally towards previous ATH despite mounting tensions in El Salvador.
Meanwhile, despite the digital currency’s mixed daily candles, trend-based momentum oscillator MACD is still bullish for FTM. Bars on the MACD histogram went above zero on Oct 3 and are still positive, indicating a continued bullish momentum for FTM.
The MACD histogram plots the difference between the MACD line (difference between 12-day and 26-day EMA) and the MACD signal line (9-day EMA of MACD). As such, momentum is bullish when the bars are positive; the MACD line is above its signal line.
However, FTM would need to chart some green candles to ensure its MACD remains positive.
The relative strength index is neutral for FTM, with a value of 61.99. In addition, the RSI trendline seems to be moving downwards, away from the overbought regions.
What Drove Fantom Upwards
Launched in 2018, Fantom is a directed acyclic graph blockchain (DAG), as in it stores blockchain history in the form of a graph of hashes. The blockchain uses the Lachesis consensus mechanism, which is Fantom’s version of the proof-of-stake mechanism.
Also Read: Ethereum addresses holding more than 1 Ether hits record high as ETH holds $3.8K.
Fantom users enjoy very low gas fees and fast transaction confirmation times. Moreover, the network supports smart contracts too. Fantom’s bull run picked up the pace during August this year when the Ethereum-killer integrated with Chainlink’s price feeds oracle.
Meanwhile, Fantom announced a developer conference, from Oct 25-Oct 29, in Abu Dhabi, UAE. As the event comes near, social media buzz would help boost FTM prices. Adding to the bullish fundamentals, Fantom is enjoying increased investor participation as well.
The number of Fantom active addresses has grown by 1,925% YTD from 80 addresses on Jan 1 to 1,620 on Oct 17. Further, the addition of several projects on the blockchain resulted in the network growth rate rising by nearly 462%. DeFi projects have also helped the Fantom network’s meteoric growth.
Data from DeFi Llama shows the total value locked in projects on Fantom has rocketed to $5.2 billion, with 46 projects currently active on the network. Additionally, Fantom’s high correlation with BTC means that even if corrections happen, BTC’s rise will likely buoy FTM also.
Earlier this month, DeFi yield aggregator Yield Finance announced integration with Fantom, launching vaults where users can lock FTM and stake rewards. The network’s explosive growth has left investors wondering if the nickname ‘Ethereum-killer’ actually holds for Fantom.
At the time of writing, FTM was trading at $2.223, down 3.5% on the day.
