- Fantom price has been stagnant, unable to break through the 50-day EMA barrier, but FTM holders’ participation has surged by 97% in the past month.
- The increase in active addresses and transactions on the Fantom network indicates growing bullishness, potentially leading to a price recovery.
Fantom, the blockchain platform, is currently experiencing a period of price stagnation as it struggles to break through the crucial 50-day Exponential Moving Average (EMA) barrier. However, behind the scenes, a surge in FTM holders’ participation is creating a sense of optimism among investors and potentially altering the price action dynamics.
At the time of writing, Fantom’s price hovers around $0.2720, with a sideways movement observed over the past week. Despite the price standstill, FTM holders are actively engaging with the network, as evidenced by their behavior on-chain.
Over the past month, FTM holders’ activity has increased by an impressive 97%. The number of active addresses on the network, which averaged around 164 in June, has now grown to 264. While this growth may appear modest given the current market conditions, it is considered an optimistic sign of development.
The increase in activity is not limited to mere presence but also encompasses transactions conducted on the Fantom network. Transaction volumes have surged significantly, with the network processing transactions worth $8.72 million, compared to $2.87 million a month ago.
Notably, this bullish sentiment extends to new addresses joining the network. The rate of new address formation has increased by 45% between mid-June and the present, indicating sustained growth. A rising network growth rate is typically considered a bullish signal, as it suggests a potential price increase over time.
To initiate a significant price recovery, Fantom needs to generate enough bullishness to breach the key barrier represented by the 50-day EMA. Currently, indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) show bearish signals. However, a shift to bullish signals in these indicators would likely coincide with an FTM price surge, pleasing FTM holders.
The ongoing surge in FTM holders’ participation and the growing network activity demonstrate the increasing confidence and interest in Fantom’s potential. While the market conditions may currently be suppressing price movements, the active involvement of FTM holders suggests a potential revitalization.
As the Fantom network seeks to diversify its bridge providers in the wake of Multichain protocol disruptions, the positive sentiment surrounding FTM could provide additional support for the platform’s growth. It remains crucial for users and investors to closely monitor the developments and trends in the Fantom ecosystem, as they can significantly influence the future trajectory of FTM’s price.
