Fantom (FTM) investors have been experiencing a challenging period as the token’s price has seen a significant decline, occurring at a time when the blockchain itself is showing promising growth in network activity.
The past week was particularly harsh for Fantom, with its value dropping by double digits. According to CoinMarketCap, FTM’s price plummeted over 23% in the last seven days, including an 8.5% fall in just 24 hours. At the time of writing, Fantom was trading at $0.3694 with a market capitalization exceeding $1 billion.
Data from Santiment revealed an increase in FTM’s exchange supply and a decrease in off-exchange supply over the past week, suggesting selling pressure on the token. Additionally, whale confidence in FTM appears to be waning, as both the supply held by leading addresses and the number of whale transactions have decreased.
Whalestats data shows Fantom ranking 27th among the top 100 ETH whales’ sold cryptocurrencies in the last 24 hours. Despite the token’s losses, Fantom Insider highlighted one of Fantom’s 2023 achievements in a tweet, noting that FTM will have over 128 million unique addresses. With the planned launch of the Fantom Sonic mainnet in 2924, the situation could improve, and an increase in daily active addresses was observed on January 6, 2024.
Following the downturn, blockchain’s daily transactions have gained upward momentum, which could be seen as promising. However, Fantom’s Total Value Locked (TVL) continued to decline over the past week. High network activity for FTM could soon positively impact the token’s price movement. CryptoQuant data indicates that FTM’s Relative Strength Index (RSI) is in the oversold region, which could increase buying pressure and potentially raise FTM’s price. Moreover, the token’s Money Flow Index (MFI) is nearing the oversold zone, and the Chaikin Money Flow (CMF) has recorded an uptick, suggesting a potential increase in downward price movement in the coming days.
