- Fantom Foundation is set to present its blockchain to the United Nations’ Central Bank Digital Currency (CBDC) Architecture Group on March 11.
- The event showcases Fantom and other blockchains that could be used to build government-backed CBDCs.
- If selected, FTM could gain mainstream recognition for its interoperable aBFT blockchain pushing its price higher.
The Fantom Foundation’s presentation in the Digital Currency Global Initiative by the United Nations could be the start of something big, as it could potentially kickstart a parabolic bull rally for Fantom price.
Capitalizing on the rising demand for CBDCs
Fantom is a high-performance, scalable, customizable, and secure smart-contract platform that is also asynchronous byzantine fault tolerant (aBFT). Like many new and upcoming blockchains, Fantom tackles the “trilemma of blockchain” at its core and makes sure that decentralization or security are not compromised for the sake of scalability.
By participating in the UN’s initiative, Fantom wants to help advance the monetary systems in general. To this end, a recent announcement from Fantom Foundation added,
Fantom evaluates success through the prism of financial inclusion and social impact… We genuinely believe that our work in the Middle Eastern region will dramatically improve the economies involved and present meaningful opportunities for local citizens. CBDC’s are the next step in the direction of bringing transparency and efficiency to the legacy system.
If global central bankers or other corporates select Fantom, it will be a huge step forward in adopting the Fantom blockchain. The development will arguably improve Fantom price fundamentals due to the apparent network effects. Hence, this announcement has a bullish bias to it and could push FMT price higher.
Fantom price hints at a 40% breakout
Fantom price has been forming a series of lower highs and higher lows since February 28. By drawing trendlines along these swing highs and lows, a symmetrical triangle pattern seems to evolve.
This technical formation forecasts a 40% breakout, determined by measuring the distance between the pivot high and low points and adding it to the breakout level.
Since symmetrical triangles do not have an inherent bias, the breakout could go either way. However, in Fantom’s case, the SuperTrend indicator has flashed a buy signal on the 4-hour chart. Therefore, the chances of an upward breakout are higher.
A decisive 4-hour candlestick close above $0.51 suggests that a 40% upswing to $0.715 is possible. Interestingly, the target coincides with the 78.6% Fibonacci retracement level.
FTM/USDT 4-hour chart
However, investors need to understand that the bullish move is primarily dependent on the United Nations’ development. An unfavorable outcome will quickly invalidate the bullish thesis and send Fantom price in a tailspin.
If Fantom price slices through the symmetrical triangle’s lower trendline at $0.45, a 40% sell-off to $0.22 can be expected.
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