- The FTM/USD opened the week with a 16% jump to $2.35.
- Fantom’s update on sharing governance proposal for launching Aave fuelling the rally.
- FTM still has more bullish steam left.
KOLKATA (CoinChapter.com) – Fantom’s native blockchain asset reversed weekend selloff losses. As a result, the FTM/USD pair logged 16% gains on Monday, rising from sessionals lows at $1.97 to the $2.35 local top. FTM’s rally came on the heels of Fantom proposing Aave’s v2 deployment on the Fantom Opera blockchain.
Fantom is an EVM-compatible, proof-of-stake blockchain that runs on an asynchronous-BFT consensus algorithm. Previously, FTM pumped due to the launch of Geist Finance on the Ethereum contending smart contract blockchain. The FTM/USD pair’s 47% rally kicked off from $1.3 on Wednesday, culminating at $2.45 on Friday.
As usual, sellers sold the top, sensing overbought fears. But FTM/USD’s galvanizing move restored bullish confidence in the blockchain’s token.
Governance Proposal To Launch Aave V2
In Aave’s launch governance proposal, Core Fantom team member, ‘theotherpomp,’ underlined how the PoS blockchain and the top lending protocol share the common ideals of openness and accessibility. Plus, most of the literature explained how the network favors Aave’s v2 deployment in every possible way.
“We believe that Fantom is ready-made to support Aave: Fantom offers a secure infrastructure, highly liquid markets, oracle integrations (such as Chainlink and Band Protocol), and an array of services, including on-chain explorers and indexing solutions (such as The Graph and Covalent).”noted theotherpomp in the proposal
The Fantom member highlighted the ecosystem’s recent 370 million FTM incentive initiative to attract developers to test the space. Incentive offers continued.
“Upon reaching minimum TVL requirements, Aave will be eligible for incentive rewards to be used to grow the protocol on Fantom, including by incentivizing end-users.”
Theotherpomp continued upselling Fantom’s advantages. Through a demonstration of the blockchain’s 47+ active. total value locked (TVL) numbers of $5.8 billion, 30,964, and a growing number of smart contract deployments. 854,328 unique addresses and over 90 million total transactions, theotherpomp explained how “there is great potential for synergy between Fantom and Aave.
FTM/USD Technical Setup
Sellers appeared again to interrupt the rally, but the FTM/USD pair formed a Descending Channel both on the spot rates chart as well as the relative strength index (RSI) chart.
In detail, a Descending Channel follows a trend of lower highs and lower lows, something which later provides a significant bullish impetus for an asset’s recovery.
FTM’s ongoing downward channel hints at a similar scenario. Bearish pressure might push down prices towards $2 and RSI towards 41.72, but the $1.95-$1.99 provides crucial support preventing further declinings from taking place. After selloff exhaustion, bulls could restart the rally with an upside target near $3.85.
When will FTM’s momentum take a U-turn that remains to be seen.