Fantom bullish on-chain metrics may fuel price rally.
- Fantom addresses held for over a year currently stands at 73%, suggesting high holder confidence. Exchange inflow increased by 5% in the last 24 hours, raising expectations of a price movement.
Fantom [FTM] has gained the attention of the cryptocurrency market.
On-chain metrics during the recent cycle provide concrete indications of a probable price increase, where long-term holders dominate the network and exchange inflows surge accordingly.
LTHs signal strong confidence in Fantom
One significant metric that drives Fantom’s potential price increase is the amount of its accumulated addresses holding the token, which stood at 73% at press time.
This indicates strong market sentiment and confidence among long-term market participants.
Historically, when more holders keep their tokens, selling pressure goes down, laying a very solid foundation for the rise in price.
Keeping Fantom onboard, its long-term holders are typically less likely to sell in the face of volatility. This resistance to sell may stabilize the coin price and may encourage further buying activity.
The fact that so many investors are holding on adds more fuel to bullish sentiment.
Source: IntoTheBlock
What stablecoin liquidity has in store
Currently, $112 million worth of stablecoins are locked in the Fantom ecosystem, which is 30% of its market cap. Stablecoin liquidity in DeFi projects brings much-needed money into the ecosystem.
In the case of Fantom, liquidity would actually be coming in and positioning the market for volatility and higher price targets.
The significant amount of coins locked into the network testifies to confidence in investors about the Famtom long-term growth, and also acts to add to the bullish outlook.
Source: DefiLlama
Is Fantom ready for a price rally?
Exchange inflows for Fantom also increased over the last day by more than 5%, adding to the positive sentiments.
This indicates that market participants position for short-term opportunities available in the market and may lead to increased buying.
Source: IntoTheBlock
With this uptick, Fantom has a chance to break into new price levels. Recently, the coin managed to push past the $0.62 resistance level, and the consolidation phase is on.
Given the recent positive sentiment, the price might rise as high as $0.86 very soon.
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