Fantom whales have been active in the crypto market despite FTM price breaching key support levels. But, is whale accumulation enough to pump FTM price?
The crypto market cap finally flipped the crucial $1 trillion mark at press time as most of the top assets traded in the green. Bitcoin, Ethereum, Cardano, and DeFi tokens like Fantom (FTM) reversed short-term gains battling key resistance levels.
At press time, FTM price traded at $0.2188, noting 7.86% daily gains as 24-hour trade volumes picked up by 57.53%. Trade volumes for Fantom on Oct. 26 were around $82.548 million.
Fantom Whales Pushing FTM Price
Fantom whales have been on a buying spree since May despite the larger downtrend in price. Addresses with 1 million to 10 million coins bought 79 million since May 2022. In May, this cohort held around 15% of the supply, which rose to over 19% at press time.
Despite whale accumulation over the last six months, FTM price saw an over 75% pullback during the same time. At the time of writing, Fantom price was battling the $0.22 resistance.
Fantom daily RSI presented a rise in buyers as RSI broke free from the consolidation it was facing. Still, the In and Out of Money Around Price indicator presents a significant supply barrier at the $0.24 mark, where over 642 addresses hold 222 million FTM.
Network Growth and DeFi TVL Lags
Apart from whale accumulation, there is not much to support FTM price growth going forward. Network growth treaded the lower levels while daily active addresses showed no major signs of recovery.
Furthermore, there was a notable uptick in Age Consumed, which could mean that a large number of tokens were being moved after sitting idle for an extended period of time.
Still, since there was a recent drop in FTM supply on exchange, it could point towards some sort of accumulation. If demand for Fantom grows in the near term, the supply on exchanges reducing could push FTM price.
A worrying factor, however, is Fantom’s DeFi infrastructure, which looks weak as its TVL sat at all-time low levels. Data from Defillama suggested that FTM TVL stands at $546 million, way below the $800 million high.
Low DeFi TVL presented that institutional inflows into the network were low, and Fantom could need a push before it can start a reversal.
In the near term, FTM price could eye the $0.24 mark, but, in case of a bearish reversal price can drop to $0.17.