Fantom has made the headlines with its most recent surges. Several traders are in awe as it climbed above several critical levels, reclaiming levels it lost over the last two months.
One such big push happened last week when it had one of its most significant surges on Monday. It started trading at $0.41 but experienced a significant spike in buying pressure. Prices shot up as a result, and the stock broke $0.48. It closed with gains exceeding 17%.
The seven-day session closed with gains of over 22%. Many feared a change in price trajectory that could result in a massive decline, while others worried about the driving force behind the uptrends.
Fantom Had a Crucial Upgrade
The most recent development on Fantom is the impending Sonic Upgrade, which will happen between November and December. The developers believe the latest addition will improve the network’s performance through the new Fantom Virtual Machine (FVM), better Lachesis consensus mechanism, and Carmen database storage.
The upgrade will increase the blockchain transaction speed to over 2,000 transactions per second (TPS), a massive improvement compared to the current 30 TPS. Developers claimed that the upgrade is going according to plan as previous simulations produced good results. They added that the testnet handled 2,000 TPS within 729 milliseconds.
The Sonic upgrade will also affect more than just the TPS. The developers expect it to reduce storage requirements by up to 90%. This massive reduction will make node operation less expensive and accessible.
However, the impending upgrade has yet to cause an influx of investors as several metrics point to a slight decline in total locked value (TVL) in Fantom’s defi applications. Nonetheless, there are signs that interest will come. For example, the TVL in Fantom DApps increased by 22%.
The interaction will continue to increase in the coming days as the upgrade date draws nearer. Nonetheless, the highlighted figures show that the impending network improvement plays a very small role in the coin’s surges.
The latest uptrend was due to a massive increase in investor buying. Several metrics point to an enormous increase in trading volume over the last month, which has kept growing.
FTM is Struggling
Fantom price has hit a brick wall after several weeks of massive increases. It failed to register any significant price change in the last three days. The trend started on September 19 as it peaked at $0.658. The asset experienced notable corrections, leading to an almost 3% decline.
It continually tested the resistance but failed to break out. The pivot point standard (PPS) explains this pattern. FTM has been unable to flip this critical level due to massive selling congestion, making it the second pivot resistance.
A Gradual Momentum Build Up
Several indicators point to a gradual buildup. The momentum indicator is arched upward after a short time, trending sideways. The growing momentum may continue as the average direction index is still on the uptrend despite the three-day trend. With momentum pointing to bullish accumulation and the ADX hinting that the upward trajectory has strength, FTM may break out soon.
The above assertion aligns with readings from the moving average convergence divergence. The metric prints buy signals amidst the price ranging. Additionally, the Bollinger Band is expanding as prices surged out of the upperband. The expansion also points to an impending breakout.
The bull will look to keep prices above $0.60 and continue efforts to flip the second pivot resistance. Failure to maintain trading above this critical level will result in the asset retracing to a low first pivot resistance at $0.55. The Fibonacci retracement level points to a possible drop to $0.42 once the highlighted mark breaks.
Nonetheless, the metric also points to a possible flip of the $0.68 barrier. The next stop may be the 61% fib level at $0.73.
