Is Fantom (FTM) Price Set for Further Gains Amid Volatility Spike?

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Fantom has consolidated its recent rally with another price jump in the last trading week. Could the high price volatility amid neutral market sentiment trigger more upswing? 

Fantom Price Volatility is on the Rise

A deeper dive into the underlying on-chain data shows that rising price volatility, among other factors, could see Fantom capture more gains in the coming weeks. Data from blockchain analytics firm Santiment reveals FTM price volatility has nearly doubled in the past month. 

FTM price volatility rose 87% from 0.031 on February 16 to 0.058 on March 21. 

The price volatility metric monitors the average changes in the price at which FTM tokens move between addresses. Periods of intense volatility have often coincided with recent important price upswings. 

Fantom (FTM) Price Volatility. March 2023. Source: Santiment

Crypto investors often seek to skim potential profit margins from tokens with wide short-term price changes. Hence, the rising volatility could attract more demand to the Fantom network in the coming weeks. 

Despite the recent upswing, on-chain data shows that the market perspective surrounding FTM is still far from euphoric levels.

FTM weighted sentiment has decreased since mid-March. From 6.70 recorded on March 12, it has considerably reduced to 0.15 as of March 20. 

Fantom (FTM) Social Sentiment, March 2023
Fantom (FTM) Social Sentiment, March 2023. Source: Santiment 

The weighted sentiment metric monitors the difference between the number of positive and negative mentions of an asset across social media channels. Typically, when it declines, it could be a bullish signal for crypto investors looking to buy the dip. 

With the social sentiment yet to reach euphoric levels, if FTM can maintain the rising price volatility, it may attract more traction and generate additional gains in the coming weeks. 

FTM Price Prediction: Is $0.60 Within Reach?

IntoTheBlock’s Bid-Ask spread indicator analyses the aggregate order books of top exchanges. It provides some insight into the potential Fantom price action. 

Fantom is unlikely to face major resistance as it approaches $0.57, with a supply wall of 10 million FTM tokens. If it splits through this barrier, FTM may advance toward $0.64.

Fantom (FTM) Exchange Market Depth, March 2023
Fantom (FTM) Exchange Market Depth, March 2023. Source: IntoTheBlock

Conversely, the 5.9 million FTM buy-wall around $0.43 could offer considerable support if the bears seize control. But, if FTM fails to hold this demand zone, it could slip toward $0.36, where another 12 million FTM buy orders will provide another significant support line.

Disclaimer

BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.



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