Phantom (FTM) Price Surge Driven by Transition to Sonic
This week, Phantom (FTM) made significant gains in the market, with a 13% price increase that outperformed other altcoins. The surge in price can be attributed to the gradual transition of layer 1 blockchains to Sonic, a platform designed to facilitate decentralized application development through a layer 2 bridge to Ethereum (ETH).
Indicators Highlight Phantom’s Undervalued Potential
On August 5, FTM experienced a price drop to $0.26 amidst a market downturn, resulting in a 30-day Market to Realized Value (MVRV) ratio of -30.88%. The MVRV ratio serves as a measure of market profitability, with a negative ratio indicating potential unrealized losses if all holders were to sell.
Recent data from Santiment shows that the price increase has pushed Phantom’s MVRV ratio back into positive territory. History suggests that when the MVRV ratio turns positive, further upside potential may be on the horizon, indicating that FTM could see a rise above $0.40 in the near future.
Exploring Phantom’s Growth Potential
Further supporting this outlook is the increase in active addresses, new addresses, and zero-balance addresses on the Phantom blockchain over the past week. This growth in user participation indicates that the price surge is not isolated but rather backed by active engagement within the network.
Additionally, Sonic Labs (formerly Phantom Foundation) teased the upcoming launch of Sonic, hinting at potential developments in the pipeline. The anticipation surrounding Sonic’s release in the fourth quarter of this year could drive optimization and demand for FTM as the launch date nears.
Price Prediction: $0.43 Target in Sight
Technical analysis points towards a continued upward trajectory for FTM, with the Moving Average Convergence Divergence (MACD) indicator signaling positive momentum. The positive MACD readings indicate increasing momentum that could help sustain higher prices for FTM.
If the current trend persists, FTM could potentially reach $0.43, although it may face resistance at the $0.40 psychological level. In the event of a pullback, FTM could find support around $0.35.
