Famtom: Short sellers, whales fuel FTM’s rally – Is $1 within reach?
The post Famtom: Short sellers, whales fuel FTM’s rally – Is $1 within reach? appeared on BitcoinEthereumNews.com.
FTM’s short liquidations spiked to $1M after the price jumped 10% to $0.76. Large transaction volumes also spiked by 1,000% showing a surge in whale activity. Fantom [FTM] has been on a steady uptrend in recent weeks with its 30-day gains surpassing 50%. At press time, FTM traded at $0.76 after a 9% surge in 24 hours. While bullish sentiment across the broader cryptocurrency market supported this rally, two other catalysts played a role in fueling the uptrend. Spike in short liquidations Fantom’s recent gains triggered losses for short sellers after short liquidations topped $1M within 24 hours. This marked the second-highest level of short liquidations this month. Source: Coinglass When the price of an asset rallies and hits a short liquidation zone, these traders are forced to buy the token to cover their positions. This additional buying pressure stirred gains for FTM. FTM’s liquidation heatmap shows there was a hot liquidation zone between $0.76 and $0.78. As the price gained and hit these levels, forced buying by short sellers created upward momentum. Source: Coinglass Large transaction volumes surge by 1,000% A surge in whale activity has also fuelled FTM’s gains to a monthly high. Data from IntoTheBlock shows that FTM transactions exceeding $100,000 jumped from 4.38M to 50.78M. This marks a 1,000% increase. Source: IntoTheBlock This spike in large transactions coincided with a price increase, suggesting that whales were likely purchasing FTM. This also fuelled the recent gains. However, it is important to note that whales control 73% of the total FTM supply. Therefore, a spike in large transactions could trigger price volatility. Can FTM rally to $1? FTM bulls gained strength after the 50-day Simple Moving Average (SMA) crossed above the 150-day SMA earlier this week. This crossover coincided with a spike in buying volumes as the volume…
Filed under: News - @ October 16, 2024 1:20 am