- FTM’s price has hit new weekly highs amid news of Andrew Cronje joining Sonic Labs.
- The uptrend showed signs of weakening, alongside a possible correction to $0.36.
Fantom [FTM] has seen renewed bullish sentiment in the last seven days after the price jumped 18% from $0.29 to a weekly high of $0.37.
FTM was trading at $0.373 at the time of writing. In the past 24 hours, the token gained by over 10%, outperforming both Bitcoin [BTC] and Ethereum [ETH].
Trading volumes have also spiked by 44% according to CoinMarketCap, likely driven by traders buying into the uptrend. So, what is driving the FTM rally?
DeFi pundit rejoins Fantom ecosystem
Fantom Labs, which has since rebranded to Sonic Labs, recently announced that decentralized finance (DeFi) expert Andrew Cronje will be its new Chief Technology Officer (CTO).
Source: X
The DeFi developer will play a crucial role in launching Fantom Sonic, which is a scalable new generation network replacing Fantom Opera.
Once the Sonic Network launches, FTM holders can migrate their tokens to a new $S token at a 1:1 ratio.
Cronje’s involvement in Fantom has previously been a driving factor for growth. For instance, in 2022, FTM rallied by 45% on speculation that Cronje would be rejoining the project.
The price is mimicking previous moves, with the recent uptrend. However, such rallies can be shortlived, if solid fundamentals are lacking.
Will FTM sustain the uptrend?
A look at the technical indicators points towards a weakening uptrend. The Moving Average Convergence Divergence (MACD) line is above zero, indicating that the short-term momentum is positive.
However, the MACD is trending below the signal line, suggesting that the rally might be weakening.
Source: TradingView
Analyzing the Chaikin Money Flow (CMF) also showed that buying pressure, while present, was steadily declining. The CMF has made a lower low but maintained a positive value at 0.13.
The declining CMF, despite the price increase, showed a bearish divergence and a likelihood for FTM to test lower support levels.
If the uptrend fails, FTM will drop to the 0.618 Fibonacci level at $0.36. A lower support level also lies at the 0.382 Fib ($0.352).
Read Fantom’s [FTM] Price Prediction 2024-25
A re-entry of buyers in the market could see FTM rally towards levels seen earlier this month above $0.408.
Data from IntoTheBlock shows that a large number of FTM addresses were “out of the money” (in losses) at press time. If these addresses choose to sell to minimize losses, further dips await FTM’s price.
Source: IntoTheBlock
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