Fantom's (FTM) price has seen a significant rise recently, but it might face a correction soon. This is mainly because FTM holders might sell their assets for profit. Over the past two days, Fantom’s price jumped 23%, bringing it to a crucial resistance zone.

Current Situation with Fantom

The recent price increase has attracted many new investors to Fantom. However, this has also caused existing holders to think differently. The Market Value to Realized Value (MVRV) ratio sheds light on this. The MVRV ratio, which shows investors' profits and losses, indicates that Fantom’s 30-day MVRV is at 14%. This level of profitability might lead to sales. Historically, FTM corrections have happened when the MVRV is between 7% and 21%, a range considered risky. You can find more financial news on COINTURK FINANCE.

Fantom is at risk in this scenario, with investors poised to sell. About 105 million FTM is close to becoming profitable, highlighting this risk. The Global In/Out of the Money (GIOM) indicator shows that if Fantom’s price surpasses $0.82, there will be an additional supply worth $84 million. This is because the supply was bought at prices between $0.76 and $0.82. Since FTM holders have been waiting for profits for around a month, they might soon start selling.

Analysis of FTM Chart

At the moment, Fantom’s price is $0.80, sitting within the resistance range of $0.80 to $0.88. This range has previously acted as strong support and resistance, and FTM couldn’t break through this range three times last month.

Currently, FTM is testing the lower boundary as support, and a rise to $0.82 might trigger selling among investors. This could cause Fantom’s price to drop and stabilize around the $0.80 mark. This scenario would lead the altcoin to consolidate between $0.63 and $0.80.

On the other hand, if investors choose to hold onto their assets and not sell, Fantom’s price might keep rising and potentially break through the resistance zone. Converting this resistance into support would invalidate the bearish outlook and could push the price above $0.90.

In conclusion, while Fantom has seen impressive gains recently, it faces a potential correction due to profitable investors who might sell their assets. Whether the price will continue to rise or fall will depend largely on investors' actions in the coming days.