Key Takeaways
- Fantom has risen by greater than 45% over the previous three days.
- The rally follows a proposal from Andre Cronje on a potential resolution to assist fUSD return to its supposed $1 peg.
- Nonetheless, FTM has reached a big space of resistance that might restrict its upward potential.
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Fantom’s FTM token has rallied since Andre Cronje issued a proposal to get better fUSD’s peg.
Andre Cronje Submits fUSD Proposal
Fantom is gaining vital bullish momentum as hypothesis mounts about Andre Cronje’s potential return to DeFi.
Cronje has triggered a stir within the Fantom neighborhood over the previous few days after he submitted a fUSD optimization proposal that goals to unravel the stablecoin’s extreme de-pegging problem. Cronje, who grew to become identified for creating the yield optimization software Yearn Finance and a bunch of different DeFi protocols, introduced he could be leaving crypto to return to the normal finance sector in March, days after launching his long-awaited Solidly venture on Fantom.
Furthermore, a Fantom handle extensively believed to belong to Cronje has added over 100 million FTM prior to now two weeks, which has added to the hypothesis surrounding his potential 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 just lately put out a Twitter update 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 individuals believe that fUSD may be saved. The sudden upswing derived from a symmetrical triangle breakout that developed on the four-hour chart.
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 may forestall costs from advancing additional as addresses look to interrupt even on their underwater positions.
A sustained four-hour shut above $0.51 may assist Fantom achieve additional momentum to advance to $0.56. Failing to beat the $0.51 may encourage merchants to promote their holdings, doubtlessly pushing FTM again to the $0.43 assist stage.
Disclosure: On the time of writing, the creator of this piece owned BTC and ETH.
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