Fantom Rebounds 45% on Andre Cronje Comeback Speculation

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.
  • Still, FTM has reached a major space of resistance that would restrict its upward potential.

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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 potential return to DeFi.

Cronje has precipitated a stir within the Fantom neighborhood 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 grew to become recognized for creating the yield optimization instrument 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 challenge on Fantom.

Moreover, a Fantom address broadly believed to belong to Cronje has added over 100 million FTM previously 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. However, the Fantom Foundation not too long ago put out a Twitter update stating that “fUSD isn’t UST,” including that fUST is “over-collateralized” and backed by staked FTM. “Users 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.

Still, it stays to be seen whether or not Cronje’s proposal can assist fUSD regain its $1 peg.

FTM Meets Resistance

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

Source: TradingView

Despite the numerous features, Fantom seems to have reached resistance.

Transaction historical past reveals that 207 addresses have beforehand bought practically 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
Source: 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 stage.

Disclosure: At the time of writing, the writer of this piece owned BTC and ETH. 

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