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Fantom (FTM) price continues to display strength leading the gains in the crypto market on late Thursday and during the early Asian trading hours on Friday. The token of the smart contracts-based decentralized finance (DeFi) platform is up 13.55% in the past 24 hours and 56.5% over the past week. FTM has so far recorded 135% gains since the beginning of 2023 to the current levels.
Top Crypto Gainers
The growth in Fantom price has been linked to the recent announcement by the Fantom Foundation that it has collaborated with Axelar to provide interchain communication for the network and its Web3 ecosystem. With these fundamentals coupled with the technical setup, it is expected that FTM’s value would continue growing.
Fantom’s Partnership With Axelar To Send FTM Ballistic
Fantom described itself as a safe, secure, and scalable smart contracts platform that is designed to provide DeFi services and promote the development of DeFi apps. Its unique selling point lies in its design aimed at overcoming limitations in transaction speeds.
To live up to their commitment of helping DeFi app developers, the Fantom Foundation recently announced that it had partnered with Axelar, a network that enables cross-communication among blockchains, to provide “interchain communication for Fantom & its broader Web3 ecosystem!”
Axelar provides interchain communication for #Fantom & its broader Web3 ecosystem! ⛓️
With @Axelarcore, Fantom users & builders benefit from secure, decentralized interoperability across 30+ chains
See how they'll bring cross-chain swaps to @SpookySwap👇https://t.co/DWchpthfk6 pic.twitter.com/SSeAoVhDX8
— Fantom Foundation (@FantomFDN) January 24, 2023
According to the announcement, the integration of Axelarcore into the Fantom ecosystem will give its creators and users access to secure and decentralized interoperability across a total of 30 different blockchains.
According to the Fantom Foundation, a system to connect various blockchains such as Axelarcore is necessary for enabling the true borderless and universal potential of cryptocurrencies. The company further reiterated Axelarcore’s potential adding it is a:
… decentralized network …, which is the proof-of-stake blockchain that connects the 30 chains on Axelar. It’s run and maintained by validators.
The integration of Axelar with Fantom’s top DEX SpookySwap will allow users to swap ETH tokens on the Ethereum network for FTM on Fatom with just one click. This is made possible through the use of Squid, a protocol built on Axelar that provides liquidity routing between chains.
Fantom (FTM) Price Completes A Bullish Flag Pattern – Where Next?
Fantom (FTM) is trading at $0.4672 with a bearish bias on Binance. Its 24-hour trading volume was up 118% to approximately $700 million. FTM’s live market stood at $1.308 billion, having risen 15.58% over the same timeframe. This placed Fantom at #40 according to the CoinMarketCap ranking.
Fantom price has just completed the trajectory forecasted by a bullish flag on the daily chart. FTM’s price action between January 10 and 19 led to the appearance of a falling flag as seen on the daily chart below. This technical formation forecasted a 56% upward rally with the target set at $0.4883. This target was attained yesterday when the Fantom (FTM) price rose to highs around $0.50.
Increased buying pressure from the current levels could see the price rise again above the target to revisit yesterday’s high at the $0.50 psychological level. Beyond that, the FTM price may attempt a move to $0.55 or higher to confront resistance from the $0.60 psychological level.
FTM/USD Daily Chart
Supporting Fantom’s bullish thesis was the position of the relative strength index (RSI) at 74 in the overbought region. This suggested that there was still more room for the upside.
Also validating the positive outlook for Fantom (FTM) was the relatively strong support the price enjoyed on the downside. The immediate support provided by the $0.45 psychological level provided the first line of defense. Other areas of support are found at $0.3757, $0.3425, and the $0.30 psychological level.
Additionally, the 50-day simple moving average (SMA) at $0.26 and the 100-day SMA at $0.24 provided additional support zones further down.
The significance of the $0.45 immediate support level was supported by on-chain metrics from IntoTheBlock, a blockchain data analytics firm. Its In/Out of the Money Around Price (IOMAP) model showed the said support level was relatively stronger compared to areas of resistance on the upside.
This foothold was within the $0.4473 and $0.4603 price range where a total of 18.25 million FTM were previously bought by approximately 951 addresses.
Fantom IOMAP Chart
As such, any attempt by the sellers to push the price below this level would be met by massive buying from this cohort of investors who would want to see the price remain high to maximize their profits.
On the downside, the same IOMAP chart shows that more than 72% of FTM holders are in profit at current prices. These investors may be compelled to take profits leading to a drop in the price. In addition, RSI was moving away from the overbought zone, adding credence to the ongoing correction. If selling intensifies, Fantom (FTM) may drop below $0.45 toward the support areas described above.
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