The growth of the DeFi industry and smart contracts accommodating decentralized transactions of such finance options has created room for many crypto developments. Even the best features and speeds of now will become obsolete because of the constant work being done on evolving the crypto space. Fantom emphasized solving the major issue with smart contract development, including transaction speeds. According to Fantom developers, their network is capable of processing a transaction in just two seconds.
All the development work and features of the Fantom network are overseen by the Fantom Foundation. The development team behind Fantom is well experienced in creating a full-stack blockchain ecosystem, and their experience has helped Fantom become a scalable and secure transaction network. Its goal is to facilitate DeFi and related services.
FTM currently ranks at the 40th position with a $4.2 billion market capitalization. Fantom has posted a phenomenal upwards movement of over 1000% returns in the last two months. Fantom token has risen from 16 cents to $1.990 as its all-time high. The near-time price action of Fantom seems to be positive consolidation. There have been higher volatility of more than 30% in a day for the entire last week.
Fantom Price Analysis
Fantom has skyrocketed to ultimate highs and has become a 10X coin within two months. The near-term prospects of FTM seem positive, but the price rally shouldn’t be expected to continue in the near term.
With rising volumes, Fantom cryptocurrency has scaled new highs in terms of valuation gains. Compared to the market leader ETH in DeFi in Smart contracts, it is still just 1%. The scope of advancement is there, but the scaling in valuation wouldn’t convert to realistically possible gains without a fundamental market position.
Since July 20, Fantom has taken off to a new height, and the price gain has been mind-boggling with a huge 75% difference between its last traded value and 200 Days moving average. One should be cautious of investing at such price levels, as fall back from these levels will be catastrophic for your portfolio and might take years to retrace to the same levels.
RSI has been trading on overbought zones, meaning people have acquired this cryptocurrency for the last 5 or 6 weeks. There is no doubt about its actual capability to improve and upscale. One should hold some FTM tokens, but not at the cost of their entire portfolio. Keeping it at a maximum of 10% of your portfolio would be the best-case scenario for trending and consolidating positions.
The hourly chart indicates a mixed bag of red and green candles, which gives a clearer image of the price action for a shorter duration. FTM has time and again respected its trend line while falling to the trend line. Hence, there is a stronger positivity even in a shorter time frame. It has been consolidating for the last couple of hours and should soon give a breakout. According to our Fantom price prediction, the best time to buy would be near the trend line. RSI on hourly charts is neutral with volumes comparable to pre-September 07 price actions.