- Fantom crypto price has been in a strong bullish trend in the past few days.
- It has surged by over 132% from the lowest point this year.
- Fantom will launch the second version of fUSD stablecoin.
Fantom crypto price has formed a double-top pattern as the developers prepare to launch fUSD, the second iteration of its stablecoin. FTM was trading at $0.4617, which was a few points below the weekend high of $0.50. It has jumped by over 132% from the lowest point in 2023.
fUSD second version ahead
Fantom is a bruised blockchain that went through a major challenge in 2022 as concerns about key parts of its ecosystem emerged. At the time, the total value locked (TVL) of its DeFi ecosystem plunged from an all-time high of over $14 billion to less than $600 million.
Recently, the TVL in its DeFi ecosystem has been in a strong upward trend because of the crypto resurgence. Tarot, the biggest DeFi dApp in the ecosystem, has seen its assets rise by over 279% in the past 30 days to over $165.33 million.
Geist Finance, a lending platform in its ecosystem, has seen its assets rise by over 24% in the same period. Other top performers in the ecosystem are SpookySwap, Beethoven X, and Beefy.
Fantom price rose sharply during the weekend after the developers said that they will launch the second version of Fantom USD (fUSD). The new version of the stablecoin is being built to provide builders, partners, and users a predictable and budget-friendly system. As such, they can be able to allocate fees and predict future costs based on usage.
As part of this transition, fUSD v1 will implement liquidations. In this situation, where any fUSD will be equal to or greater to FTM or sFTM, backing will be liquidated. They have also built a tool that will let them swap DAI to fUSD.
The next important catalyst for the Fantom price will be the upcoming monetary policy statements by the Fed, ECB, and Bank of England (BoE). These banks are expected to continue hiking rates as the battle against inflation continues.
Fantom price prediction
The FTM crypto price surged to the highest point since May of last year. As it jumped, the coin moved above the important resistance level at $0.3236, the highest point on November 7. It has also formed a double-top pattern at $0.4965, whose neckline was at $0.4406. A double-top is one of the most popular reversal patterns.
On a positive side, Fantom crypto price remains above the 25-period and 50-period moving averages. Nonetheless, the double-top pattern has more weight, meaning that it will likely have a bearish breakout. A move above the resistance at $0.4965 will invalidate the bearish outlook.
