Fantom Rebounds 45% on Andre Cronje Comeback Hypothesis

Share This Post

Key Takeaways

  • Fantom has risen by greater than 45% over the previous three days. 
  • The rally follows a proposal from Andre Cronje on a doable answer to assist fUSD return to its meant $1 peg.
  • Nonetheless, FTM has reached a major space of resistance that might restrict its upward potential.

Share this text

Fantom’s FTM token has rallied since Andre Cronje issued a proposal to get well fUSD’s peg.

Andre Cronje Submits fUSD Proposal

Fantom is gaining vital bullish momentum as hypothesis mounts about Andre Cronje’s doable return to DeFi.

Cronje has brought about a stir within the Fantom group over the previous few days after he submitted a fUSD optimization proposal that goals to resolve the stablecoin’s extreme de-pegging problem. Cronje, who turned recognized for creating the yield optimization device Yearn Finance and a bunch of different DeFi protocols, introduced he can be leaving crypto to return to the normal finance sector in March, days after launching his long-awaited Solidly undertaking on Fantom.

Furthermore, a Fantom handle broadly believed to belong to Cronje has added over 100 million FTM up to now two weeks, which has added to the hypothesis surrounding his doable return to the Fantom ecosystem.

The fUSD proposal comes throughout a turbulent interval for the stablecoin market. Earlier this month, Terra suffered a dramatic collapse after its UST stablecoin misplaced its peg to the greenback. Nevertheless, the Fantom Basis lately put out a Twitter replace stating that “fUSD is just not UST,” including that fUST is “over-collateralized” and backed by staked FTM. “Customers create fUSD by borrowing towards their staked FTM. If the worth of the FTM goes beneath the minimal collateral ratio, then the FTM is progressively auctioned off to customers who bid utilizing fUSD (to maintain peg),” the publish learn.

Nonetheless, it stays to be seen whether or not Cronje’s proposal might help fUSD regain its $1 peg.

FTM Meets Resistance

FTM rallied by greater than 45% over the weekend, indicating that market members have faith that fUSD may be saved. The sudden upswing derived from a symmetrical triangle breakout that developed on the four-hour chart.

Supply: TradingView

Regardless of the numerous good points, Fantom seems to have reached resistance.

Transaction historical past exhibits that 207 addresses have beforehand bought almost 85 million FTM between $0.49 and $0.51. This vital provide barrier might forestall costs from advancing additional as addresses look to interrupt even on their underwater positions.

Fantom transaction history
Supply: IntoTheBlock

A sustained four-hour shut above $0.51 might assist Fantom achieve additional momentum to advance to $0.56. Failing to beat the $0.51 might encourage merchants to promote their holdings, probably pushing FTM again to the $0.43 help degree.

Disclosure: On the time of writing, the creator of this piece owned BTC and ETH. 

For extra key market tendencies, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.

https://www.youtube.com/watch?v=+lastest

Share this text

spot_img

Related Posts

- Advertisement -spot_img