Do you like to ride on the backs of cryptocurrency whales? If so, then you’ll definitely want to check out Fantom (CCC:FTM-USD). Apparently, large-scale traders may be showing interest in Fantom in early 2022.
Reportedly, one crypto whale recently purchased 500,000 FTM. That order was valued at $1,110,000 – clearly, somebody’s preparing for an imminent bull run.
However, you don’t have to buy Fantom just because a whale bought it. Informed investors should always conduct their due diligence and learn about a token before investing their hard-earned capital in it.
Today, I’ll help you get started with a quick technical analysis of FTM’s recent price action. Just as importantly, we’ll delve into the details of a project that could have a transformative effect on decentralized finance as we know it.
Analyzing the Fantom Price
It seems like ages ago – July of last year, to be exact – that Fantom was available for purchase at just 16 cents per token.
The next thing you know, a horde of buyers (and maybe, some crypto whales) rushed in and bid up the FTM price. By late October of 2021, it was trading near $3.
That turned out to be a stubborn resistance level, however. At least three more times – once in November, and then twice in the first half of January 2022 – Fantom made unsuccessful runs at the $3 level.
As of Jan. 19, FTM was trading at $2.88 and it might be above or below $3 by the time you read this. You’ll want to monitor that level closely, as it’s a battle zone which could provide support or resistance in the coming weeks.
Fast, Scalable and Secure
Fantom (the project, and the token by extension) is described as a “fast, high-throughput open-source smart contract platform for digital assets and dApps” (decentralized applications).
Speed, security and scalability are emphasized in this project. If you’re seeking instant transactions and extremely low fees, this project should be of great interest to you.
It’s actually a timely project that could solve a major problem in decentralized finance. Personally, I’ve found that cryptocurrency transactions aren’t always as instantaneous as I’d like them to be – and the sometimes exorbitant gas fees drive me crazy.
Thankfully, transactions on Fantom are finalized in a second. Moreover, they cost a mere fraction of a cent.
Plus, the network’s transactions take place on a global, trustless and leaderless proof-of-stake network. In other words, security is a high priority.
Additionally, the Fantom platform is known to be highly scalable. In fact, it can process thousands of transactions per second and scale to thousands of nodes.
Are You Ready for Fantom Season?
By now, you might be interested in FTM and the project it’s based on. Yet, there may be even more intriguing news in store.
As reported by InvestorPlace contributor Shrey Dua, DeFi developer Andre Cronje has been hinting at new features found in his upcoming Ve(3,3) project. Apparently, that project will have its own token launched on Fantom.
Cronje will reportedly collaborate on this new project with another blockchain influencer, Daniele Sestagalli. According to Dua, the new token has been described as an “emission-based token [that balances] ecosystem participants.”
A tweet issued by Sestagalli provides few details, but plenty of enthusiasm:
“If you’re asking, me and Andre are launching a new coin on #fantom and it will start Fantom Season! We started here, is natural we now come back to growth the ecosystem and tech that made me who I am today.”
That tweet had more than 6,600 likes as of Jan. 19, so it looks like there’s a groundswell of support for this intriguing project.
The Bottom Line
Depending on when you happen to read this, you might want to watch the $3 level carefully if you’re trading FTM.
Meanwhile, keep an eye out for developments with the Fantom project and token. The emphasis on speed, low fees and high scalability is certainly encouraging.
Like all altcoins, FTM is speculative and there’s risk involved. Still, a small position could provide exposure to a project with high potential in the decentralized finance space.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.