Can Phantom prices sustain their 23% rise?

Fantom (FTM) has shown a significant recovery after a recent decline that resulted in significant losses in holdings. Many investors chose to hold their holdings, which contributed to the decline.

However, this losing streak may end soon with Phantom bringing optimism to the market.

Fantom investors are skeptical.

This week, FTM's exchange supply increased significantly, with 37 million tokens transferred in 48 hours. Investors sold their holdings for a profit of $31 million, signaling concern over the altcoin's stalled progress. Such moves undermine confidence in the cryptocurrency's short-term prospects.

The lack of sustained upward movement has left many investors worried about further losses. Fear of losing profits has pushed holders to dump their tokens, adding to selling pressure. However, the recent rise in prices should help mitigate these concerns, which could calm market sentiment for FTM.

Active Directory profitability data shows that only 10 percent of participating FTM investors are profitable. This is the lowest level of this group, which indicates a slowdown in sales activity. Historically, profitability has been low and few investors are interested in selling, which reduces downward pressure on prices.

A sales slowdown could support Phantom's recovery. With fewer holders reducing their positions, the altcoin has a better chance of continuing its recent gains and building an upward trajectory. This volatility may help FTM find critical price levels in the coming weeks.

FTM Price Forecast: Target at $1

Phantom's price has increased by 23.88% in the last 24 hours, pushing the altcoin above the $0.83 resistance level. Trading at $0.84, FTM is now focused on confirming this increase and maintaining its bullish momentum. Holding above this level is critical to maintaining market optimism.

If FTM successfully breaks the $0.83 support level, it may continue to rise. This will allow the altcoin to recoup the 52% losses it suffered in the second half of December. Retrieving $1.03 as support would mark a significant milestone, restoring investor confidence and indicating further growth potential.

However, failure to hold above $0.83 could lead to a return to $0.76, undermining the bearish view. This scenario partially erases the recent gains, leaving Phantom vulnerable to a deep decline to $0.66. Continuous speed is critical to avoid further obstacles.