The Fantom Token FTT is undoubtedly one of the most trending coins on the crypto market. In just a few days, the FTT/USD rate has risen by more than 45 percent and three major daily green candles have already been recorded this week. FTT is now trading at just under $0.24 at the time of publication, having recently fallen to around $0.16.
According to the developer, Fantom should be profitable
The increase follows a recent statement from developer Andre Cronje about his project. Cronje announced that the Fantom Foundation is cash flow positive and has generated more than $10 million in annual revenue, as reported by capital.com. Fantom’s assets are said to total $340 million.
Fantom is doing well because of the decentralized financial sector, without which Fantom could not exist today, Cronje, nicknamed the DeFi Godfather, said in a blog post.
The Fantom project was launched in 2018 and raised $40 million. However, that money was quickly reduced, Cronje said, as it was spent on listing fees on crypto exchanges and sponsorship activities. Within 2 years, the fortune dwindled to $4 million.
Fantom’s business model focuses on DeFi
After that, Cronje made a decision: The Fantom Foundation no longer wanted to spend money on placements on crypto exchanges or influences that promote the project. Instead, in February 2020, the decision was made to focus entirely on the DeFi sector with its investments to establish itself as an important market participant. The strategy paid off and today Fantom is in a much better position if Cronje’s statements are to be believed.
The positive statements about Fantom come after Cronje confirmed his departure from the crypto industry in March 2022, citing the culture and values that had developed that he did not want to support. But recently he announced his comeback as the “architect” of the Fantom Foundation. “Crypto is dead, long live crypto,” Cronje wrote in his blog post.
The Fantom network is now established as a serious competitor to the Ethereum blockchain. It is a smart contract platform that makes its technology available to DeFi applications and DApps. In doing so, Fantom aims to overcome the limitations of the existing blockchain generation and set standards in terms of scaling, security and decentralization.
Buy Fantom right now 93 percent cheaper
FTM is the native token of the blockchain and its price rose sharply in the bull market of 2021. At the end of October last year, the exchange rate exploded to almost 3.5 dollars after FTM/USD cost less than 20 cents a few a month before that.
But since then, the Altcoin has lost a lot in value. Figures from coinmarketcap.com show that despite the recent uptrend, FTM / USD is still more than 93 percent cheaper than just over a year ago. With this, Fantom Token has lost even more compared to other cryptocurrencies. Most altcoins are seeing a drop between 80 and 90 percent so far in this market mark, although the two best cryptocurrencies, Bitcoin and Ethereum, are down less than 80 percent.
So the current price of less than 24 cents could still be a good opportunity to buy Fantom at a deep discount compared to the all-time high. But can we expect the rally to continue? And what do analysts expect from Fantom’s price in the medium and long term? Answers can be provided by looking at the current chart analysis and forecasts.
Fantom: Bearish pattern on the daily chart
Looking at the daily chart, FTM/USD entered a descending triangle formation in May this year. This is a bearish chart pattern where there is more chance of a downward correction from the formation. Also, since FTM entered the pattern from a correction, this also supports the continuation of a bearish trend.
In fact, FTM/USD also broke from the formation, losing support at $0.23 in the process. However, the price is trying to get back into the formation. Now it remains to be seen if it is just a retest and thus a bearish confirmation of the previous support as a new resistance, or if the price can break out of the formation, contrary to expectations.
Bullish scenario: FTM rises to $0.55
For the bullish scenario, FTM/USD would have to break the declining resistance line of the chart pattern around $0.25. If successful, the technical price target is around $0.55. At the same time, the price of Fantom could test the next important resistance area below which the altcoin fell at the beginning of the year.
A falling wedge can also be drawn on the daily chart. If this is a valid formation, a breakout to the side is more likely. FTM would then test the current upper resistance line and could reach a technical price target slightly below $0.5 if it breaks successfully.
A falling wedge is also visible on the larger time frame. FTM price could theoretically remain in this chart pattern until March 2023, falling as low as $0.12 before a trend reversal is likely. Price targets between $1.2 and $2.2 are possible depending on the timing of the breakout from this pattern.
According to price forecast, FTM will increase to $4.5
The price forecast for Fantom is clearly bullish in the medium to long term according to Digital Coin Price. The analysts expect prices around 0.6 dollars for FTM next year. In 2025, it is expected to rise to more than $1.
However, according to the forecast, FTM will not see its all-time high of around $3.4 again until 2030, before the price could rise above $4.5 the following year. Therefore buying FTM would be a good investment in the long term. In the best case scenario, a return of more than 1,800 percent would occur within ten years.
Another buying opportunity: IMPT token in the pre-sale
The IMPT project could be a good buying option among the new cryptocurrencies at the moment. Because it is dedicated to the mega-topic of climate protection. In this way, IMPT buyers can trade with emission credits and thus contribute to CO2 neutrality through their investment.
Due to the high demand for IMPT tokens, the stock was already sold out early in the first phase of the pre-sale. Phase 2 of the presale is currently running at a preferred price of $0.023. This group could also be sold out soon.