As most cryptocurrencies show a slight recovery following the continued rout, Fantom’s token, FTM/USD, shows robust signs of recovery. At the time of writing, FTM/USD was trading at $2.36, and it has gone up by 17.10% in the past 24 hours, despite having lost 19.03% in the last week. The latest jump happens after FTM/USD settled at the support of $2.00, resisting a further drop, even as all other cryptocurrencies fell by double digits. It is now clear that strong fundamentals are supporting Fantom.

Transactions on Fantom Surpasses DeFi Leader Ethereum

According to a report by CoinDesk, transactions on the Fantom network rose past 1.2 million on Monday, surpassing those on Ethereum, at 1.1 million. This is the first time transactions on the Fantom ecosystem have overtaken Ethereum. It is believed that the recent surge in transactions on the Fantom network is connected to the investors’ continued search for alternative avenues to accrue value through yield farming. Crypto research firm Delphi Digital says the high yield rewards and newer projects are helping the Fantom network to grow. Projects such as veDAO and OxDAO are attracting TVL to the network through “vampire attacks” on other protocols. 

Data by DeFiLlama shows that the recent activity on the Fantom network helped it snap the third position by a total value locked of $12.65 billion. It is now only below Ethereum and Terra. This represents gains of about 180% in a month, while most other protocols in the last month have been losing their TVL. Although analysts warn that the current activity could wane as yields fall, the rise of transactions above Ethereum positions Fantom as a true competitor in the DeFi space.

Nonetheless, FTM/USD has a hurdle to clear if it is to claim its previous all-time high.

FTM/USD Technical Analysis on the Daily Chart

FTM/USD Faces Immediate Resistance at $2.39

On the daily chart, FTM/USD is clearly bullish above the $2.00 support. A bullish pin bar that formed at the support is already taking the price higher, as the token continues to erase losses in the market rout that started on January 16. 

Nonetheless, whereas FTM/USD has shown resilience in the latest market weaknesses, compared to peers, it faces immediate resistance at $2.39. Besides this, all the moving averages are providing resistance above, with prices expected to retreat after the 24-hour gains, as investors take profit at the key level.

FTM/USD – Concluding Thoughts

The rising transactions on the Fantom network show its emerging dominance in the DeFi space, with its high-yield products expected to continue attracting investors. From a fundamental perspective, this supports a bullish view of the crypto token. However, from a technical point of view, we expect some retracement after the token hit the resistance at $2.39. Price could slide slightly towards the $2.00 level before buyers jump in again. Still, the buying pressure is strong on FTM/USD, and quick upsides are possible. As a prudent trader, I recommend we buy FTM/USD on a short retracement towards the $2.0 support, which will give a better risk-reward ratio entry, with targets at $2.39, $2.94, and potentially at $3.31. Good luck!