Fantom : The Dark Horse of all Layer-1s for BINANCE:FTMUSDT by CCAI_Official


With the development of Layer 2 scaling solutions for Ethereum , there has been a shift of repricing on other Layer-1 solutions such as Solana, Avalanche, Cosmos, and others. Surprisingly, the coin that we are going to talk about today is still quite under the radar, and only recently has it gained traction from some people on Twitter due to its scalability and ease to use. Fantom, created by Fantom Foundation in 2018, is the coin that steadily crept up throughout 2021 because of its cooperation with YFI’s founder Andre Cronje. We believe the recent runup is caused by the fact that some of the layer-1s are reaching a pivot point where there must be a massive catalyst in order for them to undergo another repricing event. However, compared to other prominent layer-1s out there, Fantom is relatively much cheaper in terms of valuation (valued currently at around USD 2.2 billion), whereas most well-known layer 1s are in the USD 30 billion range in terms of fully diluted valuation (FDV). Hence, it makes a lot of sense that the rise in price in the last couple of weeks happened because of the repricing from many speculators in the space, and they all expect that Fantom can keep its trajectory in the short-medium term of 1-3 months, anticipating Ethereum upgrade as well. We thought it would be interesting to discuss more about the coin through the lens of technical analysis , both in the 12-hour and the 4-hour timeframes. Let us dive in deeper into the FTMUSDT chart.

Looking at the 12h chart, we can see that the breakthrough of 80 cents was fought back through a substantial pullback from 93 cents to 79 cents on the pair, especially when Bitcoin was still somewhat stagnant but tend to go up. If Ethereum can stay upbeat and no broader market factor that can disrupt the momentum of the coin, it would not be a surprise to see FTM going higher, potentially closing the previous high at around 83 cents, and challenging more price discoveries as the coin prepares for the layer 2 hype train, EIP-1559 and London hard fork in the Ethereum community, which will cause a feedback loop of people looking into alternative Layer-1 solutions as Ethereum is also getting more and more expensive to use for everyday transactions. But suppose if Bitcoin starts to tank once more, we might be able to see a pullback to retest 65 cents. If that were to happen, that would be a good buying opportunity for a lot of traders who have been looking for an entry into the coin. That said, let’s look into the shorter timeframe of 4-hour to see how things are shaping up in the FTMUSDT pair:

Judging from the same point of view as the higher timeframe, the 4-hour chart looks good, and primed to get even more momentum to the upside if there is no disruption coming from BTC or the broader crypto market. If the price keeps steady at around 78-80 cents, Ethereum upgrades that will happen this July as well as the incoming traction of people who will look for alternatives of ETH will propel FTM into a higher state, given the overall state of the market.

Overall, things are looking optimistic for FTMUSDT . As we go closer into the EIP-1559 that is scheduled this July 14 and other upgrades such as Layer-2 solutions and London hard fork, there will be a lot of people who will bet on various Layer-1s to potentially undergo a massive repricing event. This is the catalyst that we are anticipating happening in the next couple of weeks and thus we are looking to be more bullish on that note.

Most Related Links :
usnewsmail Governmental News Finance News

Source link

Back to top button