Fantom Price Analysis: Can FTM Be A Good Asset To Invest In Sept

4 sept.

Fantom Price Analysis: Can FTM Be A Good Asset To Invest In September
The average 30 day On-chain transaction volume in profit to loss ratio indicates more profitable transactions as compared to losses.
Despite the chaos in the broader markets, Fantom sits at a monthly gain of 13.46%.

The weakness in blue chip cryptocurrencies have affected the altcoins as well. Bitcoin's fall below the major psychological 60K level has raised concerns about the recovery in the altcoins.

As a result, several altcoins are facing significant challenges on the way to recovery. Fantom which is a layer 1 blockchain and a smart contract platform for DApps is trying to stabilize near the support in the recent sessions.

The daily FTM/USD chart highlights a consolidation in the recent sessions which indicates the chances of recovery in the crypto if the market stabilizes. Despite the market turmoil, Fantom was exchanging hands close to $0.38, recording a monthly gain of 13.46%.
Whales On The Buying Side, Which Side Are you?
Despite a 25% fall in the last two weeks, the whales seemed to be maintaining a bullish stance in Fantom. The top addresses also known as whales have more resources and more investment, hence they tend to be on the right side of the trend for most of the time.
<iframe title="Santiment Chart: Supply held by top addresses (as % of total supply) (FTM), Price (FTM)" width="800" height="425" src="embed.santiment.net/chart?ps=fantom&pt=FTM&df=2024-08-03T18:30:01.135Z&dt=2024-09-04T18:29:59.135Z&emcg=1&emhwm=1&wm=topHoldersPercentOfTotalSupply;price_usd&wax=1&wc=#FF5B5B;#26C953&ws=;" scrolling="no"></iframe>

Source: app.santiment.net

As per an on-chain data provider Santiment, Despite the price drop, the top addresses were observed to be on loading Fantom. The whales were holding nearly 72.7% of the total supply a week ago, which has now surged to 73.09% indicating a 0.23% jump in their holdings.

The accumulation by the large wallets may be an indication of a potential recovery in the asset. However, the price needs to deliver it on the charts as well.

Moreover, Daily On-Chain Transaction volume in Profit indicates that as of 3rd September, 12.82 million transactions were profitable. Whereas, 13.32 Million on-chain transactions remained in loss. The ratio of on-chain transaction volume in profit to loss was 0.96 indicating more transactions were in loss.

<iframe title="Santiment Chart: Daily On-Chain Transaction Volume in Profit (FTM), Daily On-Chain Transaction Volume in Loss (FTM), The Ratio of Daily On-Chain Transaction Volume in Profit to Loss (FTM), The Ratio of Daily On-Chain Transaction Volume in Profit to Loss (FTM) MA(30)" width="800" height="425" src="embed.santiment.net/chart?ps=fantom&pt=FTM&df=2024-08-03T18:30:01.135Z&dt=2024-09-04T18:29:59.135Z&emcg=1&emhwm=1&wm=transaction_volume_in_profit;transaction_volume_in_loss;transaction_volume_profit_loss_ratio;[2;transaction_volume_profit_loss_ratio;MA30]&wax=0;1;2&wc=#FF5B5B;#FFCB47;#5275FF;#FF8450&ws=;;;" scrolling="no"></iframe>

Source: app.santiment.net

The daily ratio of Fantom's on-chain transaction in profit to loss which is accessed using a 30 day moving average has been in profits more than those resulting in loss over the past month. The avg 30 day ratio at 1.38 suggests that for every FTM transaction which ended in a loss, 1.38 transactions resulted in profits.
Can Fantom Head For A Recovery In September?
From a technical perspective, Fantom price was hovering close to the 20 day Exponential moving average indicating a neutral outlook in the short term. However, the 50 and 200 days EMA lies on the higher side indicating a bearish trend prevailing in the long term.

The daily chart witnessed a consolidation with $0.36 as support and $0.44 level as immediate resistance. Now, either side breakout or breakdown may clarify the next trend in the asset's price.

A breakout on the higher side may establish buyers' domination in the short run and the price may head for a recovery which is more likely. However, it requires stability in the broader markets.

Also, the breakdown scenario can't be neglected as the long term trend outlook is still bearish. On the lower side, a breakdown below the $0.36 level could trigger a selloff in Fantom.