: Fantom Crypto Price Prediction 2025
Is it possible to make a Fantom crypto price prediction for 2025? This article takes a look.
The Fantom project was launched as a scalable blockchain network capable of supporting various decentralized applications (DApps), enterprise blockchain applications, and decentralized finance (DeFi) projects. One of the issues that Bitcoin and some of the earlier tokens had was the inability of validators to process and confirm transactions speedily. Fantom solves this issue using the DAG-based consensus algorithm that allows lightning-fast transaction speeds even with the heaviest transaction volumes.
The Fantom token (FTM) quickly became one of the highly sought-after tokens when it was listed on significant exchanges in March 2021. By August 2021, it began a three-month meteoric rise to a high of $3.48.
Then came the Omicron variant of COVID-19 in November 2021. Fantom took a heavy tumble along with the rest of the crypto market, falling to as low as 19 cents in December 2022.
Since that near appointment with the July 2021 all-time low of 15 cents, Fantom's pairing with Tether has risen 160%. But even at that, the price remains below 50 cents, a mere 14% of its August 2021 all-time high.
For a project which has vastly expanded its ecosystem and has been snapping up partnerships with several companies operating in the DeFi space, its current price of 45 cents looks like a steal. While putting a price tag on the 2025 price of the FTM/USDT pair is not realistic, it is hard to see the FTM token remaining at 45 cents until that time.
Fantom's product base
Fantom has an extensive product base that cuts across several blockchain ecosystems. With more than 300 DApps and more to come, Fantom has the fundamentals of a blockchain product with use cases already working in the marketplace.
Here are some of the applications in partnership with or integrated into Fantom:
DEXs: Fantom provides the functional backbone of several decentralized exchanges. Curve Finance, 1inch, SpiritSwap, OpenOcean, Sushi, Solidly, and OrionTerminal are just a few decentralized exchanges currently running on the Fantom blockchain.
NFT platforms: Fantom also powers NFT platforms such as PaintSwap, NFTKEY, Opera House, and Artion.
Cross-chain bridges: REN, Multichain, SpiritSwap, and SpookySwap are cross-chain bridges where Fantom forms a powerful component.
Lending and borrowing platforms: Fantom also features prominently on lending/borrowing platforms such as Geist, Alpaca Finance, Homora V2, and Qidao.
GameFi: Several blockchain gaming networks, such as Metaland, Raiders, Fantom Survivor, and PocketPals, are built on the Fantom network.
Fantom crypto price prediction 2025
One factor that will determine the Fantom crypto price prediction for 2025 is the ability of Bitcoin to make a move to recover its 2021 highs. 2025 is two years away. This provides for a long-term outlook for the FTM token.
Fantom has, over time, shown a high positive correlation to Bitcoin, and in the last two years, its price moves have followed that of Bitcoin. For instance, the uptick in Bitcoin prices in January 2023 was also seen in Fantom. February's slight pullback on Bitcoin was also reflected in Fantom's price.
When Mt.Gox collapsed in 2014, nearly everyone believed that the long-awaited demise of Bitcoin had finally arrived. But Bitcoin has not only survived, but it has thrived. Indeed, the crypto market has pulled through at least two severe market downturns.
Markets operate in cycles and tend to follow established chart patterns. To understand how markets work, we need to take a lesson from the Dow Theory of price action, which explains why the financial markets behave the way they do.
The Dow Theory describes three trends: primary, or major, secondary, and minor. Each trend type is formed by the one below it. In other words, the minor trends comprise the secondary trends, which combine to form the primary trend.
Each major trend has three phases:
• public participation.
The accumulation stage is when the institutional players acquire the token in large numbers. This is usually a quiet event and not in the public glare. In the crypto market, some websites track the movement of cryptocurrencies from the institutional/high net-worth traders, the so-called whales.
One of these is WhaleAlert, which details the net inflows/outflows of cryptocurrencies between wallets and exchanges. Typically, accumulation is marked by a net inflow of stablecoins, such as Tether, into exchanges, which are used to purchase Bitcoin, Ethereum, Fantom, and other coins in large numbers. These are then sent to non-custodial secure wallets, manifesting as exchange outflows. Sadly, many people who will later jump into the market at the other two stages do not have this information.
After accumulation reaches a tipping point, the asset's price will rise, triggering the public participation phase. By this time, the public has become aware of the latest "hot" token and started to buy into the upside move. Most of the time, the purchases are done to go with the flow and do not come with any prior research to guide the purchase.
Some public participants will be lucky to profit from the move, but most will not because they keep carrying their assets to the next stage.
The stage of distribution is when the major players who accumulated earlier start offloading their holdings. The attendant price reversal usually catches out many who entered the move at the public participation stage. The steep drop in price generates panic among them, and they start to sell massively, usually at a loss.
As they sell, the assets' supply keeps rising, and prices keep falling on the back of dwindling demand. Usually, the accumulators would already have sold off and are waiting in the wings for prices to become cheap once more to resume their accumulation.
Every financial market showcases these phases. If you look at the price action of the crypto market from 2015 to date, you will see the three phases in the price action.
BTC/USD chart: 2015 to date
Now, look at the chart of Fantom from its March 2021 launch to date. At what stage do you see the market now, considering that the last accumulation phase occurred just below the current market price? We leave that to you to decide.
FTM/USDT chart: 2021 to date
Now here is a caveat: there is no single price level that is suitable for accumulation. Most institutional players do not buy all their tokens at once or at a single price point. Their portfolios are made up of purchases made at various times and also done using techniques such as dollar-cost-averaging to reduce the unit cost of purchasing their tokens. So even though the price of Fantom is at 45 cents, some will buy at 50 cents and later buy at 21 cents. The most crucial point is that the accumulation occurs at a specific price range close to previous lows for the asset in question.
Technical analysis of the FTM/USDT pair
The technical analysis of the Fantom token's pairing with the Tether stablecoin (which represents the US dollar) will look at the long-term picture of this pair. The time frame that reflects the long-term outlook is the monthly chart. However, we have shown the daily chart as it shows the key price levels better.
FTM/USDT (daily chart)
The price action formed a double top, indicating that the uptrend stalled in November 2021. Following this topping pattern, the price broke below the dip between the tops (neckline) and continued to drop until it formed a bottom at the $0.180452 price mark. In technical analysis, the distance between the neckline and the top is about the same as the neckline to the bottom. If you had followed this perspective and bought into the low of December 2022, you probably would have seen your capital grow by 160%.
Fantom's price hit a high of $0.658, the site of a previous high formed in May 2022. Having hit this level, the FTM/USDT pair could not continue the climb, as its correlated asset Bitcoin had hit a roadblock close to the $25,000 price mark.
It is not humanly possible, nor is it advisable, to start making specific price projections two years in advance. However, we can use previous highs and lows to derive potential support/resistance targets that lie ahead when the price starts to recover.
Here is a hint: the Omicron variant's emergence was behind the drop in crypto prices in November 2021. However, a new factor took over in mid-2022, and that was the start of the interest rate hiking cycle by the US Federal Reserve. The rise in interest rates made USD-denominated assets attractive, to the detriment of risky assets such as emerging market currencies, stocks, and cryptocurrencies. If the Fed stopped hiking interest rates, USD-denominated assets, such as the Tether stablecoin, would be unattractive and bring the appeal back to risky assets. You may use any signal by the Fed that it would slow down its rate hikes or stop them entirely as a fundamental, predictive signal that could spur the market's recovery.
There is a basis for this assessment. The Fed announced in December 2022 that it would reduce the size of its rate hikes from 75 basis points. It followed this hint by hiking interest rates by only 25 basis points. This triggered the recovery in the prices of Bitcoin and its correlated assets, such as Fantom, prompting bullish Fantom crypto price predictions for 2025. However, inflation has started to tick back upwards, which could delay a tapering of the rate hikes. The price action of cryptos in February mirrored this, which explains why we had a pullback in the price of FTM/USDT from the $0.658 price mark.
Where does Fantom crypto price prediction 2025 point to?
Rather than focus too far ahead, traders should use what they see on the charts and in the news to decide when to enter. Fantom is one of those projects with outstanding potential for price appreciation in the long term due to its fundamentals. With a platform that keeps expanding its client base and sound fundamentals, demand for Fantom will only keep growing.
Further price appreciation will depend on the ability of the FTM/USDT pair to breach the resistance at $0.658. Upside targets in the near term would lie at $0.876 and $1.157. Any further advance would require a neckline break, with $1.646 being the next upside target. $1.978 lies ahead, as it was the site of a previous high on 1 March 2022.
You must understand that any upticks will not automatically shoot up like rockets. Instead, there will be the ebbs and falls in the wave motion of price action, as defined by the Dow Theory nearly a century ago.
Author: Brendan Beeken
Moni Talks Founder and Chairman Brendan Beeken is an entrepreneur, commercial strategist, investor, and philanthropist. He writes on a wide range of subjects, including cryptocurrency, decentralised finance, blockchain, business advice, and professional wellbeing, for news and business websites, as well as Latest Moni and his personal site, brendanbeeken.com. Brendan draws from his own research and more than two decades of personal experience in business to offer a unique insight, perspective, and commentary on diverse subjects. He is passionate about making the cryptocurrency space more accessible and encouraging safer and more responsible trading and investing. Brendan's LinkTree is https://linktr.ee/brendanbeeken.