Despite FTM price breaking key support levels, phantom whales have been active in the crypto market. But, is the accumulation of whales enough to drive up the price of FTM?
The crypto market cap finally flipped the crucial $1 trillion mark at press time as most of the top assets traded in the green. Phantoms (FTMs) such as Bitcoin, Ethereum, Cardano and DeFi tokens reversed short-term gains while battling key resistance levels.
At press time, FTM price was trading at $0.2188, with a 7.86% daily gain as the 24-hour trading volume increased by 57.53%. The trading volume for Phantom was approximately $82.548 million as of October 26.
Phantom Whale is pushing the FTM price
The Phantom Whale has been on a buying spree since May, despite a major drop in price. From 1 million to 10 million coins addresses 79 million were purchased since May 2022. In May, this group held about 15% of the supply, which increased to over 19% at press time.
Despite the accumulation of whales over the past six months, the price of FTM saw a drop of over 75% during the same time period. At the time of writing, Phantom price was struggling with the $0.22 resistance area.
The Phantom Daily RSI presented an increase in buyers as the RSI broke free from the consolidation it was facing. Nevertheless, the inside and out of the money indicator presents a significant supply barrier at the $0.24 mark around the $0.24 mark, where over 642 addresses hold 222 million FTMs.
Network Growth and DeFi TVL Lags
Apart from whale accumulation, there is not much to support the FTM price hike going forward. Network growth hit a low, while daily active addresses showed no major signs of improvement.
In addition, there was a significant increase in age consumption, which could mean that a large number of tokens were being transferred after being dormant for a long time.
Nevertheless, since there was a recent decline in FTM supply on the exchange, this could point to some sort of accumulation. If demand for phantoms picks up in the near term, the decrease in supply on exchanges could push the price of FTMs up.
However, a worrying factor is Phantom’s DeFi infrastructure, which looks weak as its TVL is at an all-time low. Data from Defilma suggested that FTM TVL is at $546 million, down from a high of $800 million.
The low DeFi TVL showed that institutional flows into the network were low, and a push may be needed before Phantom starts a reversal.
In the near term, FTM price may keep an eye on the $0.24 mark, but, in a bearish case, the price could drop to $0.17.
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