Fantom (FTM) Soars 21% Amid Sonic Mainnet Launch Hype

Fantom’s native token, FTM, has emerged as one of the biggest gainers among the top 100 cryptocurrencies, surging by over 21% to an eight-month high of $1.13 during the early Asian trading hours on November 27. This price surge followed increasing excitement around the Sonic mainnet launch, alongside a noticeable uptick in whale investments. At the time of writing, FTM’s market cap had jumped past the $3 billion mark, positioning it as the 53rd largest cryptocurrency by market capitalization, according to CoinGecko data.

This rally represents the fifth consecutive day of gains for FTM, with the altcoin securing a 56.47% increase over the past week. However, FTM remains 68.84% below its all-time high of $3.46 set in October 2021.

What’s Driving Fantom’s Rise?

The primary catalyst behind Fantom’s recent surge is the anticipation surrounding the launch of its Sonic mainnet. The Sonic upgrade aims to strengthen Fantom’s position in the DeFi space, which has been a key focus of development for the platform. While Fantom’s ecosystem experienced a significant decline in Total Value Locked (TVL), dropping from a record high of over $15 billion to just $312.39 million according to DeFi Llama, the Sonic upgrade is seen as a crucial step in revitalizing the ecosystem.

Additionally, Sonic Labs has made waves with its recent collaboration with OctavFi, a web3 financial data platform. This partnership aims to introduce advanced on-chain treasury management and financial reporting to the Sonic protocols, adding further value to the ecosystem and attracting more attention from investors.

On top of these developments, whale activity has also contributed to FTM’s price increase. According to IntoTheBlock data, the netflow of FTM held by whales surged by over 1235%, growing from $712,000 on November 20 to more than $9.51 million on November 22.

Resistance at $1.13

Despite the bullish momentum, FTM faces a critical resistance level at $1.13. Crypto analysts on X (formerly Twitter) suggest that if FTM manages to break this resistance, it could potentially rise to $1.62, with further targets at $2.20 and $2.77, assuming the community continues to be optimistic.

CryptoBullet, a pseudonymous analyst, emphasized that $1.13 is a crucial level to watch, as it could pave the way for significant upward movement if surpassed. Similarly, Altcoin Sherpa, a well-known crypto commentator with over 232,000 followers, highlighted that FTM’s rally follows more than two years of accumulation, making this an important moment for the altcoin’s price action.

From a technical perspective, the Relative Strength Index (RSI) on the 1-day FTM/USDT chart currently sits at 70, suggesting that FTM may experience a pullback in the short term. However, the Moving Average Convergence Divergence (MACD) indicator shows the MACD line well above the signal line, indicating that the bullish trend remains intact and could sustain the rally despite potential overbought conditions.

Possible Retracement and Future Outlook

Given the strength of the rally, FTM could face a short-term retracement to the $1.00-$1.02 support zone before pushing higher. If the bullish momentum persists, the next resistance levels to watch will be in the $1.13-$1.20 range, with potential for further upside if Sonic’s launch continues to drive interest in the ecosystem.

Overall, the combination of Sonic mainnet hype, whale buying, and continued DeFi ecosystem development is driving the positive momentum for FTM, with many analysts suggesting that the altcoin’s path ahead could hold significant upside if key resistance levels are breached.