FTM investors' HODLing could pay off if Fantom price marks a 20% rally
|- Fantom price has noted a 7% increase in price in the last three days after avoiding a dip to March lows of $0.33.
- FTM holders have resorted to strictly HODLing their assets, with active deposits falling to a four-month low.
- Midterm holders control more than 78% of the supply, making profit-taking from these investors a matter of concern.
Fantom price has performed relatively better than some of the other altcoins in the crypto market over the last few days. As the altcoin begins to recover its losses, it seems like FTM holders might be in for some profits.
Fantom price aims at May highs
Fantom price trading at $0.38 has noted a nearly 7% recovery in the last three days and holds the potential to continue this path. The Relative Strength Index (RSI) is climbing back towards the neutral line at 50.0, and flipping it into a support level would likely trigger a further increase in price.
At the moment, the next major resistance for Fantom price is set at $0.42. This price point coincides with the 50- and 100-day Exponential Moving Average (EMA). But broader market cues alone are not driving the price; investors' perseverance is too.
FTM/USD 1-day chart
Over the last month, Fantom has observed a stark decline in active deposits on the exchanges. Down by 70% from 113 to 33 deposits on a daily average, it seems like FTM holders have decided to hold on to their assets for now. Usually, a spike in active deposits denominates selling that is not ideal given most of the investors are still underwater.
Fantom active deposits
Their decision of HODLing is evident in the balance held by different cohorts of investors. In the last 30 days, much of the supply held by short-term holders (Traders) has moved to midterm holders (Cruisers). The former are the investors that have held on to the supply for less than a month, while the latter are holders of supply aged between one to 12 months.
In the case of Fantom, Cruisers hold more than 78% of the supply, up from 73% from a month ago. Thus while their HODLing is good for a price rise, their profit-taking could also result in the altcoin taking a hit, should they choose to.
Fantom supply distributed by time
This profit-taking is likely once Fantom price breaches the $0.46 mark. About 1.12 billion FTM tokens worth $425 million had been purchased at an average price of $0.46 and would turn profitable once the altcoin hits this price.
Fantom GIOM
For the same, Fantom price would need to mark a 20% rally, which is possible only when the $0.42 resistance level is flipped into a support floor. However, if the recovery fails, FTM could also drop to March lows of $0.33, demanding longer HODLing from investors.
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