Fantom (FTM) has the potential to reach a price target of $1 due to strong holder confidence. Currently, 43% of investors continue to hold onto their investments, even though they haven’t made a profit yet, in the hopes of a market recovery and price increase.
One factor supporting this bullish scenario is the decreasing supply of FTM tokens on exchanges. Since March 1, the quantity of FTM available on exchanges has decreased from 655 million to 643 million. This decrease in supply, coupled with the uptick in Fantom’s price from $0.50 to $0.82 in just 12 days, suggests that there is upward pressure on prices.
Additionally, more than 45,000 FTM holders are still at a loss, indicating that they are waiting for the token’s value to increase before considering selling. This reluctance to sell could decrease selling pressure in the market, potentially leading to a continued upward price movement.
Historical data also supports the potential for substantial price rallies when a significant number of FTM holders are in a loss position. Previous surges of 165.22% and 97.16% were recorded within two to three weeks when around 45% of holders faced losses.
Looking at the In/Out of the Money Around Price (IOMAP) analysis, the majority of FTM holders (87.51% or 4,220 addresses) acquired FTM at prices below the current $0.82 mark. This solid foundation of profitable investors could act as support for FTM’s price.
However, there is a potential risk of a downtrend towards $0.77 if the critical support level of $0.80 is not maintained. Breaking through the resistance range of $0.85 to $0.95 could kickstart a bullish trend for FTM, with a price target of $0.96.
Overall, with strong holder confidence and decreasing supply on exchanges, FTM has the potential to reach $1 and beyond if market conditions and investor sentiments remain favorable.