FTM could rally over 250% following its transition to Sonic: analysts

Crypto experts predict Fantom could potentially surge by over 250% after multiple bullish patterns emerged on its charts.

According to analyst CryptoBoss, with over 189k followers on X, Fantom (FTM) could see its next bull run soon following the anticipated Sonic upgrade, which will transition its network to a more scalable and efficient architecture, enhancing transaction speed and reducing fees.

The analyst observed that FTM had broken out of a falling wedge pattern — a popular bullish reversal pattern in technical analysis — on the 4-hour FTM/USDT chart and predicted the altcoin could potentially surge 256%, targeting around $2 in the short term. 

Adding to the bullish speculation, pseudonymous analyst Clifton Fx predicted an even bigger price target for FTM, suggesting a potential 400-500% rally from its current price based on strong technicals.

The expert noted that this rally could transpire in the coming weeks and push FTM as high as $4.16 as the altcoin has broken above a long-term descending trendline that has been acting as resistance for nearly four years. 

These bullish predictions align with on-chain metrics showing a surge in trader activity and investment as the crypto market regains momentum after a holiday lull. Bitcoin’s rally back above $100,000 has reignited market optimism, setting the stage for altcoins like Fantom to follow suit.

According to data from IntoTheBlock, whale holder netflow surged 540% from an inflow of $1.74 million on Jan. 5 to over $11.1 million on Jan. 6. Such a surge in whale accumulation of an asset is typically viewed as a strong bullish signal by retail investors.

Further, data from Santiment shows that the weighted social sentiment surrounding the altcoin seems to have improved over the past six days. Its weighted social sentiment has increased from -1.64 at the beginning of January to -0.0427 at press time, suggesting that traders are becoming increasingly optimistic about the project.

FTM will transition to S

This bullish outlook for FTM comes ahead of layer-1 blockchain Fantom Opera Network’s rebranding to Sonic Chain, a new layer-1 blockchain designed for faster transactions.

Alongside this, Sonic Labs will launch its native S token, which will be used for transaction fees, staking, validation, and governance. Current FTM holders can swap their tokens for S tokens at a 1:1 ratio once the blockchain goes live. 

Binance, the world’s largest crypto exchange, has already revealed its support for rebranding and swapping FTM-to-Sonic tokens. By Jan. 13, 2025, Binance will delist all FTM trading pairs and stop processing FTM deposits and withdrawals.

Other crypto exchanges, such as Crypto.com and Bybit, have also followed suit with similar FTM token swap plans.

While there is growing community excitement, the price of FTM has yet to make any notable moves this season and is down over 40% in the past month. However, technicals suggest an impending reversal from the current bearish trend.

On the 1-day FTM/USDT chart, the Moving Average Convergence Divergence indicator shows the MACD line (blue) is about to cross above the signal line (orange), a signal for bullish reversal suggesting that bulls are picking up strength.

The Average Directional Line at 26.8 also leans towards a high chance of trend reversal potentially leading to a rally in the altcoin with the first target being the psychological resistance level of $1. A break above $1 could drive the price higher, aiming for last year’s peak of $1.44.

This article first appeared at crypto.news