Home / Analysis / Crypto / Technical Analysis / FTM Price Recovers Above $1 as Fantom Announces Memecoins and Stablecoin Launch

FTM Price Recovers Above $1 as Fantom Announces Memecoins and Stablecoin Launch

Last Updated April 10, 2024 8:38 AM
Valdrin Tahiri
Last Updated April 10, 2024 8:38 AM

Key Takeaways

  • The Fantom founder Andre Cronje announced a novel way to launch memecoins in Fantom.
  • The FTM price reached a high above $1 on April 9 despite a cryptocurrency market correction.
  • Is the FTM price bottom in, leading to a bullish trend in April or is there more downside to come?

The FTM price has performed admirably since its April 5 bottom. It increased over 30% and completely disregarded the April 9 dip. A slew of positive announcements from the Fantom Foundation and its founder could have spurred this resilience.

Cryptocurrencies that perform well during market corrections are often the first ones to increase significantly when the market stabilizes. As a result, it is worth looking at the longer-term FTM trend to determine if this can be the case.

Fantom’s Novel Memecoin Approach

On April 9, Andre Cronje, the founder of Fantom outlined a proposal  for memecoins on Fantom. He explained that those wanting to launch a memecoin can contact him directly on X. Cronje set the requirements for the token allocation, in order to create a safer enviroment for memecoin communities and investors.

The allocation is as follows: 10% of the tokens will be allocated for marketing and 5% for team expenses. Both will be locked in multi-signature wallets. The remaining 85% will be put in a liquidity pool along with FTM.

An interesting mechanism is that while 100,000 FTM tokens will be provided, if the amount of FTM in the liquidity pool exceeds 2,000,000, the initial 100,000 will be removed and the rest will be burned. This will deliver a new burning mechanism for FTM, and also reduce the risk of pump and dump schemes, since the original memecoin would freely float only after the LP ends.

However, numerous accounts on X have raised concerns  about the centralization of the scheme, since Cronje himself will decide which memecoins can launch.

Fantom also announced  that Stani Kulechov, the founder of Aave has become an angel investor in Fantom.

A final positive announcement was the launch of Fantom’s canonical stablecoin , USDC.e. The difference between a canonical and native stablecoin is that the latter is created by a third party but is backed by the native asset, which in this case is USDC. In the case of Fantom, USDC.e is minted by Wormhole and bridged from the native USDC.

FTM Price Prediction: Is the Correction Over?

The FTM price has fallen since reaching a high of $1.23 on March 22. A bearish divergence in daily RSI preceded the decrease and led to a low of $0.77 on April 5. Then, the FTM price bounced, coinciding perfectly with the 0.5 Fib retracement support level and validating it as support (green icon).

According to the wave count, this was part of a corrective wave four. While wave four may develop into a triangle, it is likely that the bottom is already in.

Since the bearish divergence, both the RSI and MACD have turned bullish. This is clear by the RSI increase above 50 and a near bullish cross in the MACD (green circles).

Fantom Price Completes Correction
FTM/USDT Daily Chart | Credit: TradingView

If the count is accurate, FTM can increase to a confluence of resistance levels between $1.45 and $1.50, created by the 0.382 long-term Fib retracement resistance level (red) and the 1.61 extension of wave four (black).Β  This will complete the current upward movement.

On the other hand, falling below the April 3 low of $0.77 will invalidate the bullish count and indicate the correction is still ongoing.

FTM’s Bottom Likely in Place

The FTM price has been one of the best performing cryptocurrencies in the last five days, an increase aligned with positive announcements by the Fantom Foundation. The price action and wave count predict the upward trend is likely to continue toward at least $1.50 before there is another correction.

 

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