FTM soars 21% amid Sonic mainnet launch hype

Fantom’s FTM has emerged as one of the leading gainers among the top 100 cryptocurrencies by market cap, amid community excitement around the launch of the Sonic mainnet and a significant increase in whale investment.

FTM rose over 21% to an eight-month high of $1.13 during Asian trading hours on November 27. This led to a subsequent increase in its market cap, which was over $3 billion at the time of writing. It is the 53rd largest crypto asset by market cap, according to CoinGecko data.

The altcoin has been on the rise for five consecutive days, gaining 56.47% last week. Despite this, FTM is still down 68.84% from its October 2021 all-time high of $3.46.

Why is the phantom rising?

Phantom’s recent rally was driven by excitement around the upcoming launch of the Sonic mainnet. Developments in the ecosystem and increased demand from investors also contributed to the increase.

With the Sonic upgrade, Fantom developers aim to strengthen its position in the DeFi industry. Data from DeFi Llama shows that the total value locked in the ecosystem dropped from a record high of over $15 billion to $312.39 million.

Building on this momentum, Sonic Labs recently announced a collaboration with web3 financial data platform OctavFi to bring advanced on-chain treasury management and financial reporting to Sonic protocols.

Meanwhile, there has been an increase in purchasing activities among whales in the past day. According to IntoTheBlock data, whale owners’ net flow increased by over 1,235%, from a $712,000 inflow on Nov. 20 to over $9.51 million on Nov. 22.

FTM faces resistance at $1.13

With increasing interest from the crypto community, X analysts expect the rally to continue if the altcoin manages to break through a significant resistance level.

Pseudonymous analyst CryptoBullet noted that FTM could potentially climb to $1.62 if it breaks through the key resistance level at $1.13, with other targets at $2.20 and $2.77 assuming the community remains bullish.

Similarly, crypto commentator Altcoin Sherpa, who has more than 232 thousand followers, identified $1.13 as a critical resistance and stated that the rise in FTM came after two years of accumulation, paving the way for a significant rise if this level is exceeded.

FTM price, RSI and MACD chart — November 27 | Source: crypto.news

On the 1-day FTM/USDT chart, the Relative Strength Index is 70, indicating that the price may pull back in the short term. However, the Moving Average Convergence Divergence shows that the MACD line is well above the signal line; This shows that the uptrend remains strong and may continue to rise despite overbought conditions.

Considering the prolonged nature of the recent rally, FTM could return to the $1.00-1.02 support zone before attempting further upside. If the bullish momentum continues, the next key resistance will be located around $1.13-1.20.