Fantom Price Forecast: Why FTM Could Soon Rally to $2

Highlights:

• Fantom has established strong intra-day support at $1.112
• Fantom price could rally to $2 if support holds
• Bitcoin rebound back to $100k could help boost the price

Fantom is one of the top cryptocurrencies that have been making headlines in the last 24 hours. This is mainly due to the successful launch of its mainnet with a rebrand to Sonic. Despite the excitement around the upgrade, the Fantom price is in the red today. At the time of going to press, Fantom was trading at $1.14, down by 10.79% in the day.

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Despite the price correction, Fantom trading volumes are on the rise, up by 100.53% in the day to hit a high of $961.61 million. This is an indicator that investor interest in Fantom is on a sharp rise and that they could be taking positions in anticipation of a second wave of gains across the market. There are multiple reasons why investors could be interested in Fantom despite its price correction today.

Broader Market Widely Expected to Rebound

Fantom’s price action is usually in tandem with the broader cryptocurrency market. This is evident in the past week; altcoins have largely remained weak even as Bitcoin rallied to new highs. The same goes for today, when the broader market, including Bitcoin, is in a correction. However, the market is stabilizing after the sharp correction that followed the announcement of a 0.25 basis point rate cut in the US.

This could mean that the market was pricing in the news that the Federal Reserve would not create a Bitcoin reserve but that the Trump administration could go ahead and do it. It could also be an indicator that after a Bitcoin rally that was mainly front-running the rate cut, the whole market is stabilizing before more organic price growth follows. This may explain why the Fantom price is stabilizing as well, and sending signals of a possible bullish reversal.

BREAKING: Jerome Powell gives his remarks after the FOMC meetingpic.twitter.com/isUJoMjw9q

— Not Jerome Powell (@alifarhat79) December 18, 2024

Technical Analysis – Fantom Price Consolidating After Correction

Fantom’s price stabilization is quite evident in its intra-day price action. On the H1 chart, bears were sharply rejected at $1.058, and the price has since established strong support at $1.112.

If this support holds, as appears to be the general trend across the market, then the key level to watch would be $1.304. This is a key resistance level for Fantom intra-day. If Fantom rallies through this resistance, then Fantom could easily rally to $2 or higher in the short term.

That said, if there is another broader market correction, the key level to watch would be the $1.112 support. A push through this level could see Fantom’s price drop to its 24-hour low of $1.058. However, this is a less likely scenario as Bitcoin appears to have found a footing above $100k and this is a positive signal for the broader market.

Fantom Upgrade Could Help Drive Momentum

Besides the fact that the broader market has given Fantom strong intra-support, the mainnet launch could help push Fantom higher. That’s because the buzz of the successful transition has proven that Fantom is a credible project.

MySonic is your all-in-one portal to experience Sonic, where you can:

⬆️ Upgrade FTM to S
🌱 Stake Your S
📱 Explore Apps
📜 Governance (Soon)https://t.co/vzocIV6Fpd pic.twitter.com/FunWD1IZTk

— Sonic Labs (@SonicLabs) December 18, 2024

This could draw in more investors, especially now that the price has experienced a significant correction, offering good entry points. The transition to Sonic is already attracting significant buzz on social media, a factor that could help drive FOMO in the short term.

Recap

While Fantom has experienced a more than 10% price correction in the last 24 hours, this is not a stand-alone scenario. It has happened across the market, and prices appear to be rebounding across the market. With Bitcoin back above $100k and Fantom enjoying the hype around its mainnet launch, a rally to $2 or higher could follow.

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