FTM Leads Weekly Crypto Gainers Ahead of Fantom Mainnet Launch
Why Is FTM Pacing the Crypto Market? | Credit: Hameem Sarwar
Key Takeaways
- Fantom’s closed Sonic testnet was a decisive success, achieving high TPS and low finality.
- The FTM price has increased over 50% in the past seven days, pacing the crypto market.
- Will this FTM increase continue in April, or will a local top be reached soon?
Fantom’s recent testnet, Fantom Sonic, recently showcased remarkable performance, hinting at promising prospects for its mainnet launch. This performance has transferred to the price movement, leaving FTM as the biggest gainer in the past seven days.
Today (March 22 2024) FTM reached its highest price in more than two years. It is approaching a long-term resistance level at $1.45, leaving traders wondering if it can break through it without difficulty.
Testnet Shows Impressive Performance
Last week, the Fantom team announced the completion of the Fantom Sonic testnet , which launched on October 24, 2023. The testnet’s goal was to show the maximum limits of the Sonic technology through traffic simulation.
The first test was conducted with realistic traffic. In it, Sonic reached 2,000 transactions per second (TPS), achieving finality for transactions in roughly one second.
The second test processed only ERC-20 swaps, aiming to demonstrate how Decentralized Exchanges (DEX) will perform with Sonic. It achieved 4,000 TPS with 1.3 second finality.
The third and final test processed only ERC-20 transfers, deemed to measure the performance of wallets and payments providers. It achieved 10,000 TPS at 1.6 second finality.
There is no exact launch date for the Fantom Sonic mainnet, though it is expected to launch in spring.
FTM Price Prediction: Is $1.50 Next?
FTM has led the top 100 cryptocurrencies ranked by market capitalization in gains during the past seven days. It has increased by 48%, followed by ONDO and STX with over 30% gains.
The increase has been rapid in the past four weeks with FTM creating four successive bullish weekly candlesticks. Today, the price reached a high of $1.18, its highest in nearly two years.
The wave count supports the continuing of the increase. It shows that FTM is in an extended wave three of a five-wave upward movement (white). FTM is also in sub-wave three (black), which is often the sharpest out of the bullish waves.
There is confluence of resistance at $1.45, created by the 0.382 Fibonacci retracement resistance level (red) and a horizontal resistance area. A top there will also give sub-waves one and three a 1:1.61 ratio, common in wave counts. Then, there will be strong resistance between $2.06 and $2.25.
Indicators such as the weekly RSI and MACD are both trending upward. Even though they are overbought, there is no bearish divergence yet to warn of an impending decrease.
FTM Likely to Continue Increasing
To conclude, Fantom’s fundamental and technical performance are both impressive. Anticipation surrounding the mainnet launch should maintain interest in the network, while the token’s price increase can keep it in the spotlight for traders. While FTM could encounter a temporary setback near $1.45, it is well positioned to continue increasing in the long-term.
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