Fantom of the Opera Blockchain
What is Fantom?
Fantom is a directed acyclic graph (DAG) smart contract platform providing decentralized finance (DeFi) services to developers using its own bespoke consensus algorithm.
Together with its in-house token FTM, Fantom aims to solve problems associated with smart-contract platforms, specifically transaction speed, which developers say they have reduced to under two seconds.
The Fantom Foundation, which oversees the Fantom product offering, was originally created in 2018, with the launch of OPERA, Fantom’s mainnet, that was released in December 2019.
Fantom attempts to use a new scratch-built consensus mechanism to facilitate DeFi and related services on the basis of smart contracts.
The mechanism, Lachesis, promises much higher capacity and two-second transaction finalization, along with improvements to security over traditional proof-of-stake (PoS) algorithm-based platforms.
Matching Ethereum, the project appeals to developers looking to deploy decentralized solutions. According to its official literature, its mission is to “grant compatibility between all transaction bodies around the world.”
Its in-house PoS token, FTM, forms the backbone of transactions, and allows fee collection and staking activities, along with the user rewards the latter represents.
Through token sales in 2018, Fantom raised almost $40 million to fund development.
FTM Price Action
FTM spent about a year and a half under $0.03 after which is exploded to $0.26 in late January of 2021. That same rally ushered in a high up to $0.87. That was a rally over 2500%.
For the following nine months there were some ups and some downs and a lot of consolidation. In September of 2021, FTM reached another new ATH at $1.94. That rally turned out to be just one of three successive rallies that lasted from late August to late October and finished with a new ATH of $3.48.
All of November was a cool off period which dropped the value of FTM from $3.48 down to $1.15 – resulting in a near 67% loss.
This is where things get interesting. While the majority of the market found further downside or a few failed rallies and consolidation, FTM has been working its way out of the recent hole its dug. From it’s recent low of $1.15, FTM has already pushed 173% up to a high of $3.15. This means that at the high, FTM recovered over 80% of what it lost not too long ago.
FTM does have resistance between $3.06 and $3.20 and has already suffered one pullback to $2.25. Now we wait to see what FTM can do as it continues to apply pressure on $3.06.
FTM Price Discovery
FTM needs to get over this current hump before making any amazing moves but with the current momentum and the recent moves we can say that FTM has a good chance to at least retest its previous high at $3.48.
The move to $3.48 flips $3.20 from Resistance to Support and that allows for the potential of Price Discovery. We have a few intermediate levels in mind that we like for Price Discovery.
$4.55 – this area has two different potentials for taking profits and therefore creates a pretty good zone from which traders may be looking to ease off their positions.
$5.16. Psychological, $5.00 will likely be a zone. We have some potential; resistance at $4.91 and we have a potential target at $516 but anywhere in this zone is where we expect to see some heavy hitters pulling profits from their trades.
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