Why could FTM grow by 27%?

• Phantom price retested and found support around the $0.364 level, following a rally ahead.
• Supply distribution data show that a cohort of whales bought FTM during the recent price decline.
• Chain data paints a bullish picture as FTM’s long-short ratio is over one.
• A daily candle close below $0.364 would invalidate the bullish thesis.

Phantom Price (FTM) found support around the crucial $0.364 support level on Friday and is up 12.5% ​​over the weekend. On Monday, it continues to trade up 3.8% to $0.429. Recent moves by high-wallet investors suggest that Fantom could hold above this key technical level and is eyeing an upside, as evidenced by a long-short ratio of over one.

Phantom price is poised for a rally following a retest of the crucial support level

Phantom price retested the downside level at $0.364 on Friday and rallied 12.5% ​​over the next two days. This $0.364 level coincides with the 61.8% Fibonacci retracement level (drawn from a low of $0.257 on August 5 to a high of $0.536 on August 25), making it a key reversal zone. At the time of writing on Monday, it continues to trade 3.8% higher at $0.429.

If the $0.364 level continues to hold as support, FTM could rise 27% to retest the daily resistance level at $0.542.

The Relative Strength Index (RSI) on the daily chart has broken its neutral level of 50 and the Awesome Oscillator (AO) is about to break its neutral level of zero. For bullish momentum to be sustained, both indicators must remain above their neutral levels for the ongoing bullish rally.

Let’s say the bulls are aggressive and the overall crypto market outlook is positive. In this case, FTM closes above the daily resistance level of $0.542, which could extend a further 12.5% ​​rally to retest the July 1 high of $0.610.

FTM/USDT Daily Chart

Santiment’s supply distribution figure shows whales holding between 100,000 and 1 million FTM tokens fell from 105.85 million on Thursday to 104.75 million on Sunday. Meanwhile, wallets holding between 1 and 10 million FTM increased from 214.43 to 216.87 million during the same period.

This development shows that the first cohort of whales may have fallen prey to the surrender event. Instead, the second set of wallets took the opportunity to stock Fantom at a discount during the recent price drop, bolstering investor confidence in FTM.

FTM Supply Distribution metric chart

Additionally, Coinglass data shows that FTM’s long-short ratio is 1.01. This report reflects bullish sentiment in the market, as the number above suggests that more traders are anticipating the asset’s price to rise, reinforcing Fantom’s bullish outlook.

FTM/USDT Daily Chart

Even though the metric and technical analysis in the chain indicate a bullish outlook, if the FTM daily candlestick closes below the $0.364 level, this move would invalidate the bullish thesis by producing a lower low on a daily time frame. This development could send Fantom price down 12.5% ​​to its August 11 low of $0.320.