Fantom (FTM) Could Surge Over 250% After Sonic Upgrade, Analysts Predict

Fantom (FTM) is poised for a potential rally of over 250%, according to analysts, as the network prepares for its much-anticipated Sonic upgrade. The upgrade promises to transition Fantom to a more scalable and efficient blockchain architecture, significantly improving transaction speed and reducing fees. With these changes, Fantom could see a surge in adoption and market value, setting the stage for a significant price rally.

Bullish Patterns Signal a Strong Potential Breakout

Crypto expert CryptoBoss, who boasts over 189,000 followers on X, pointed to a recent bullish breakout in Fantom’s price action. The analyst observed that FTM had broken out of a falling wedge pattern on its 4-hour FTM/USDT chart, a popular technical formation that often signals a reversal from a downtrend to an uptrend. Based on this pattern, CryptoBoss forecasts that FTM could surge by as much as 256%, potentially targeting $2 in the short term.

In addition to CryptoBoss’s prediction, pseudonymous analyst Clifton Fx also sees significant upside for Fantom, with a projected 400-500% rally from current levels. Clifton Fx cited strong technical indicators, noting that FTM has recently broken above a long-term descending trendline that had acted as resistance for nearly four years. This breakout, the analyst suggested, could propel FTM toward a price target of $4.16 in the coming weeks.

On-Chain Metrics Support Bullish Sentiment

These bullish predictions are reinforced by on-chain data showing increasing investor activity. Following Bitcoin’s recent rally back above $100,000, market optimism has reignited, with altcoins like Fantom potentially benefiting from the broader market rebound. According to data from IntoTheBlock, whale holder netflow surged by a staggering 540%, rising from $1.74 million on January 5 to over $11.1 million on January 6. Such a sharp increase in whale accumulation is often seen as a strong bullish signal, indicating that institutional and large-scale investors are preparing for a price move.

Further supporting the positive outlook, data from Santiment reveals that the weighted social sentiment surrounding Fantom has significantly improved over the past week. The sentiment score has moved from -1.64 at the start of January to -0.0427, indicating growing optimism among traders and investors alike.

Fantom’s Transition to Sonic Chain

Much of the excitement surrounding Fantom’s potential price rally is due to the upcoming transition of the Fantom Opera Network to Sonic Chain, a new layer-1 blockchain designed for faster transactions. The Sonic upgrade is expected to address scalability issues and provide a more efficient and cost-effective blockchain solution, which could increase its adoption in the broader crypto ecosystem.

As part of the upgrade, Sonic Labs will introduce the native S token, which will be used for transaction fees, staking, validation, and governance within the new network. FTM holders will have the opportunity to swap their tokens for S tokens at a 1:1 ratio once the blockchain goes live. Binance, the world’s largest cryptocurrency exchange, has already expressed its support for the rebranding and will facilitate the FTM-to-Sonic token swap. By January 13, 2025, Binance will delist all FTM trading pairs and stop processing FTM deposits and withdrawals.

Technical Indicators Suggest Imminent Reversal

Although FTM has faced a difficult month, with its price down over 40%, technical indicators are beginning to signal a potential reversal. On the 1-day FTM/USDT chart, the Moving Average Convergence Divergence (MACD) indicator is showing that the MACD line (blue) is about to cross above the signal line (orange). This crossover is a classic bullish signal, suggesting that the momentum is shifting in favor of the bulls.

Additionally, the Average Directional Index (ADX) stands at 26.8, which points to a high likelihood of a trend reversal. Should this reversal play out, the first key resistance level for FTM would be the psychological price point of $1. A break above this level could pave the way for a move toward last year’s peak of $1.44.

Conclusion: A Bright Outlook for Fantom

With the Sonic upgrade on the horizon, strong technical patterns, and a surge in investor sentiment, Fantom (FTM) appears to be setting up for a significant price rally. Analysts predict that the altcoin could see gains of over 250% in the short term, with some forecasting as much as a 400-500% increase in the longer run. However, the key to realizing these price targets will be Fantom’s ability to break through critical resistance levels, particularly the $1 mark, in the coming weeks.

As the Sonic upgrade nears and momentum builds, Fantom could emerge as one of the standout performers in the altcoin market, with the potential for both short-term gains and long-term growth.