Fantom’s native token, FTM, has surged by over 12% in the last day, driven by a strategic update from Sonic Labs. This surge has spotlighted Fantom as the top-performing cryptocurrency among the top 100 digital assets by market value, elevating its price from $0.43 to $0.48. This marks the highest the token has been since August 27, with its market capitalization jumping to $1.36 billion, positioning it as the 59th largest digital asset globally.

One of the key catalysts behind FTM’s recent rally was a September 9 blog post by Andre Cronje, CTO of Sonic Labs, announcing plans for the Sonic blockchain to introduce credit scores for digital wallets. This initiative aims to penetrate the global unsecured lending market, valued at over $11 trillion.

Another potential driver of FTM’s price is Sonic’s newly released testnet, which achieved transaction finality in just 720 milliseconds. In the blockchain context, finality means that once a transaction is confirmed and recorded on the blockchain, it cannot be altered or reversed.

The renewed optimism resulted in a doubling of trading volume within 24 hours, further fueling bullish momentum for FTM. According to data from Coinglass, FTM’s daily open interest surged by 33% to $162.46 million. This increase in trading volume suggests heightened investor activity, potentially adding fuel to FTM’s ongoing rally.

Looking at FTM’s price activity, the token is approaching $0.4825 on the daily chart, nudging the upper Bollinger Band. The Relative Strength Index (RSI) at 60 indicates a bullish trend with room for further growth before possibly hitting the overbought zone.

Following a steady rise above the middle band at $0.4381, the recent spike in trading volume suggests a strong market interest, indicating upward potential.

For traders and investors monitoring FTM, the immediate resistance to watch is the upper Bollinger Band at $0.5296. A sustained break above this level could open the way for further gains, potentially aiming for a higher resistance level at $0.60. If FTM continues on this trajectory, it has the potential to double its current value and approach the $1 milestone.

Currently, the critical liquidation thresholds for FTM stand at approximately $0.471 on the lower side and $0.503 on the higher side. A high level of leverage is observed among intraday traders at these prices. Should market dynamics shift and the price of FTM fall to $0.471, it could trigger the liquidation of nearly $2.9 million in long positions. Conversely, if the market sentiment turns positive and the price rises to $0.503, around $2.02 million in short positions could be liquidated.

At press time, data indicated that bears were in control, with the potential to trigger liquidations of long positions at lower levels.

Stay updated with the latest cryptocurrency news on Global Crypto News.

Post Views: 2