Fantom Price Predicted to Surge Over 250% Amid Bullish Patterns and Sonic Upgrade

Crypto experts are predicting a potential surge in Fantom (FTM) prices, with some analysts forecasting a 250% increase in the short term. This bullish outlook comes ahead of the anticipated Sonic upgrade, which will transition the Fantom network to a more scalable and efficient architecture, enhancing transaction speed and reducing fees.

Bullish Patterns Emerge on FTM Charts

According to analyst CryptoBoss, FTM has broken out of a falling wedge pattern – a popular bullish reversal pattern in technical analysis – on the 4-hour FTM/USDT chart. This breakout could potentially lead to a surge of 256%, targeting around $2 in the short term. Pseudonymous analyst Clifton Fx predicts an even bigger price target for FTM, suggesting a potential 400-500% rally from its current price based on strong technicals.

These bullish predictions align with on-chain metrics showing a surge in trader activity and investment as the crypto market regains momentum after a holiday lull. Bitcoin’s rally back above $100,000 has reignited market optimism, setting the stage for altcoins like Fantom to follow suit.

On-Chain Metrics Indicate Growing Interest in FTM

Data from IntoTheBlock shows a 540% surge in whale holder netflow over the past 7 days, from an inflow of $1.74 million on Jan. 5 to over $11.1 million on Jan. 6. Such a surge in whale accumulation of an asset is typically viewed as a strong bullish signal by retail investors.

Further, data from Santiment shows that the weighted social sentiment surrounding Fantom has improved over the past six days, increasing from -1.64 at the beginning of January to -0.0427 at press time. This suggests that traders are becoming increasingly optimistic about the project.

Sonic Upgrade and Rebranding

The bullish outlook for Fantom comes ahead of the layer-1 blockchain Fantom Opera Network’s rebranding to Sonic Chain, a new layer-1 blockchain designed for faster transactions. Sonic Labs will launch its native S token, which will be used for transaction fees, staking, validation, and governance. Current FTM holders can swap their tokens for S tokens at a 1:1 ratio once the blockchain goes live.

Major crypto exchanges, including Binance, Crypto.com, and Bybit, have announced their support for the rebranding and swapping of FTM-to-Sonic tokens.

Technical Analysis Suggests Impending Reversal

While the price of Fantom has yet to make any notable moves this season and is down over 40% in the past month, technicals suggest an impending reversal from the current bearish trend. On the 1-day FTM/USDT chart, the Moving Average Convergence Divergence indicator shows the MACD line (blue) is about to cross above the signal line (orange), a signal for bullish reversal.

Key Tips for FTM Investors:

  • Keep an eye on the MACD line crossing above the signal line, indicating a bullish reversal.
  • Monitor the Average Directional Line for a high chance of trend reversal.
  • Watch for a break above the psychological resistance level of $1, which could drive the price higher.

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