Home / Analysis / Crypto / Technical Analysis / Fantom Whale Buys $2 Million FTM Causing 8% Price Spike, But Will Uptrend Sustain?

Fantom Whale Buys $2 Million FTM Causing 8% Price Spike, But Will Uptrend Sustain?

Published June 3, 2024 3:06 PM
Nikola Lazic
Published June 3, 2024 3:06 PM

Key Takeaways

  • Whale bought $2.23 million of FTM, boosting the price by 8%.
  • FTM shows strong recovery and bullish signals.
  • Potential new bull phase, targeting above $1.50.

According to Spot On Chain, one whale bought over $2 million worth of Fantom’s FTM tokens at an average price of $0.791 each. Earlier today, FTM was trading at $0.76, which spiked by 8% since the whale purchase added to the rise. 

FTM has declined since May 20, and today’s spike could have hinted at a larger rise. 

FTM Whales Accumulate 

A cryptocurrency whale, identified by the handle 0xfd5, has made a significant purchase of Fantom (FTM) tokens, acquiring 2.818 million tokens for 2.23 million USDC at an average price of $0.791 each, according to the on-chain analysis from Spot On Chain. This transaction represents the whale’s initial investment in the FTM market.

Spot On Chain Data
FTM Whale Purchase | Source: Spot On Chain

 

Concurrently, FTM‘s price has experienced a notable rise, increasing by 8% from a recent low of $0.76. This upward trend reflects growing investor confidence and signals Fantom’s strengthening market position.

Furthermore, the investor still has 735,744 USDC available, suggesting potential further investments. 

FTM Netflow
FTM Netflow | Souce: Santiment


The Netflow chart  shows a larger dip of 3,7 million FTM being withdrawn from exchanges into private wallets. This indicates accumulation activity, and with today’s price spike, investors believe the price will rise further. 

FTM Price Analysis 

Fantom initiated a new bull cycle after bottoming out at $0.17 on October 18, 2023. Subsequently, it reached its yearly high of $1.20 on March 22. This peak was followed by a significant 55% drop to $0.56 on April 13.

FTM
FTMUSD | Credit: Nikola Lazic/Tradingview

 

The pattern of Fantom’s price movements included a three-wave corrective phase after a five-wave uptrend, validating the notion that the price was in a correction. This was confirmed by a 38% recovery to nearly $0.80 by April 21.

The breakout above the descending trendline further verified the onset of an uptrend. On May 20, the price reached a new high of nearly $1, surpassing the April 22 high. Its following downtrend was stopped at the April 22 high, making a sharp upturn and suggesting a possibility FTM is in a five-wave pattern. 

Should the rise continue to another higher high, we would see a five-wave move and receive confirmation that FTM is starting a new bull phase that could lead to a new yearly high above $1.50. 

However, if the price reverses below May’s high, FTM could face more downside potential, with $0.50 zone being its next likely target. 

Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
Was this Article helpful? Yes No