Fantom (FTM) has rebounded 36% since recording a local low of $0.33 on March 11. On-chain data shows that FTM is attracting new demand. Is there a chance for this altcoin to rise above $0.50 in the coming weeks?
New participants and investors are pouring into the Phantom Network, while long-term holders are bullish.
Phantom long-term holders are growing in confidence
Phantom is an alternative DeFi smart contract platform that aims to solve the blockchain trilemma by using its unique Directed Acyclic Graph (DAG) consensus algorithm. Its parent coin, FTM, has rallied 30% over the past two weeks after falling below $0.35 in mid-March.
After a wave of profit-booking in February, long holders on the Phantom Network appear to be bullish again. According to on-chain data from Sentiment, the FTM Mean Coin Edge has been trending up recently.
As the red line below shows, the FTM Mean Coin Edge increased from 19 to 47.35 between February 12 and March 30.
Mean Coin Age (90d) data tracks the number of days FTM coins have been at their current address. The rise in the Mean Coin era means that long-term holders are becoming increasingly convinced of the fundamental value and future price potential of FTM.
Also, a growing wave of new participants joining the Phantom Network confirms the bullish trend. According to Sentiment, the number of new wallet addresses created on Phantom has increased significantly in March 2023.
The chart below shows that the number of new FTM wallet addresses created increased from 46 on March 6 to 201 as of March 30.
The growing network indicates that more people are adopting Phantom’s native DAG technology. This shows that blockchain is becoming more mainstream and has the potential for a wider range of use cases.
In particular, when increased network growth among long-term holders coincides with an accumulation trend, it often leads to increased demand for the underlying cryptocurrency. If crypto investors view this as a unique buying opportunity, FTM is likely to experience a prolonged uptrend.
FTM Price Prediction: $0.60 Is A Viable Target
Global In/Out of Money (GIOM) data presented by IntoTheBlock provides the distribution of wallet addresses currently holding FTM based on their average purchase value.
A deeper analysis of the Phantom GIOM data shows that FTM may have reached a sell wall at $0.47, the maximum price that 3,800 addresses paid for their 1 billion FTM coins. However, if FTM can break above $0.47, it could rally towards the next important resistance area at $0.60. Around that price, another 4,670 addresses bought 75 million coins.
Nevertheless, the bears could invalidate this bullish trend if FTM slips below $0.40, where 1,500 addresses have bought 55 million coins. If this happens, the phantom native coin could drop further to reach $0.33. Around $0.33, however, 9,400 addresses that bought 391 million FTM may offer support.
disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your research and seek professional advice before making any financial decisions.