Fantom (FTM) has experienced substantial price appreciation in recent days; however, there is now speculation about a possible correction in the altcoin's value.
This consideration stems from the behavior of FTM holders, who appear to be contemplating selling their holdings to capitalize on profits.
Investors in Fantoms May Sell
After two days of a 23% increase, Fantom's price closed at the critical resistance level. This may have caused existing holders to feel differently, even while it encouraged a lot of new investors to join the network.
Supporting this is the Market Value to Realized Value (MVRV) ratio. The MVRV ratio evaluates the profit and loss of investors. Fantom is profitable, which could lead to sales, as seen by its 30-day MVRV of 14%. The danger zone, or the region between 7% and 21% MVRV, is when FTM adjustments typically occur.
Investors are already waiting for a chance to sell Fantom, which is susceptible to this. This is demonstrated by the fact that about 105 million FTM are about to turn a profit.
Based on the Global In/Out of the Money (GIOM) indicator, approximately $84 million worth of supply would become profitable once Fantom's price surpasses the $0.82 threshold. This is because this supply was acquired within the price range of $0.76 to $0.82.
Given that FTM holders have been patiently waiting for nearly a month to realize profits, there is a possibility that they may opt to sell their holdings in the near future.
FTM Price Forecast: There Might Not Be a Breach
As of this writing, Fantom's price is trading at $0.80, within the resistance zone that spans $0.80 to $0.88. FTM has failed to break through this range three times in the last month, indicating that it has historically shown to be strong resistance and support.
As of right now, FTM is testing the lower limit as support; a move up to $0.82 would cause investors to sell. As a result, Fantom's price will drop and probably lose its support of $0.80.
Fantom's price, however, can rise further and even break through the resistance block if investors decide to hold onto their investments rather than sell them. Turning it around to support would mean that the bearish premise is refuted and the price rises above $0.90.
May 2024, Cryptoniteuae