The Fantom Foundation has significantly reduced the validator self-staking requirement on its Fantom blockchain, lowering it from 500,000 FTM to 50,000 FTM. This change, representing a 90% reduction, follows a governance vote concluded in June 2023 and was announced in a January 15 post by the foundation.
This adjustment aims to enhance the blockchain’s security by making it more accessible for individuals to run a validator. Fantom’s move to lower staking requirements is part of its ongoing efforts to improve network functionality and security.
As the FTM staking just got 90% more accessible and the network is attempting to attract more validators, lowering the bar would result in a surge in demand for the FTM token. Regarding its price behavior, FTM is known to show periods of prolonged horizontal ranges and a short period of parabolic run-ups.
With these new fundamentals potentially bolstering the demand and the token being in a range for over 500 days, is it ready for another parabolic turn?
From its all-time high of $3.60, the price of FTM declined by 95%, measured to its lowest point of $0.16 made on November 22, 2022. After a 245% recovery to $0.62 in February, this low was revisited on October 18, 2023.
A new uptrend was seen but resulted in a lower high of $0.57 around December 25. It is currently traded at $0.40, just below the significant horizontal resistance level. From June 18, 2022, when it first started to stabilize, we saw it forming a horizontal range now lasting 582 days.
The volume indicator suggests that the period from September until November last year was an accumulation event with low volume around the $0.17 support level, followed by a higher one in the following months. The daily chart RSI also points out a possible turning point as it’s getting close to its lower bound of 30%.
This resembles the period at the start of FTM’s journey from October 2018 until December 2020, when it also formed a horizontal range before its first parabolic run-up.
If the history indicates future expectations, this could imply another parabolic move for the price of FTM in 2024 and potentially a new all-time high. With the price retracing by 33% from December 25, we could have seen the end of a local correction before the next upturn starts.
If the price continues moving to the upside and breaks the $0.60 resistance, that would be the first signal we are looking for for the next starting uptrend. And if it breaks out from this lasting horizontal range, it could just be with strong enough power to cause a cascading effect and chase the price needed for a parabolic move.
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