Fantom (FTM) investors have been facing tough times due to the token’s price drop in the last few days. This occurred at a time when the blockchain was experiencing promising growth in terms of network activity.
FTM Experiences Double-Digit Decline
The past week was unfortunate for Fantom as its value fell into double digits. According to CoinMarketCap, FTM has seen a decline of over 23% in the last seven days. In just the last 24 hours, the token’s value dropped by 8.5%. At the time of writing, Fantom is trading at $0.3694 with a market cap of over 1 billion dollars.
Data from Santiment indicates that over the past week, FTM’s exchange supply has increased while its off-exchange supply has decreased. This could suggest that FTM was under selling pressure at the time of writing. Additionally, experts believe that whale confidence in FTM has diminished, as both the supply held by leading addresses and the number of whale transactions decreased last week.
Whale Confidence in FTM Wanes
According to Whalestats, Fantom is ranked 27th on the list of cryptocurrencies sold by the top 100 ETH whales in the last 24 hours. While the token is losing value, Fantom Insider shared a tweet highlighting one of Fantom’s achievements in 2023. FTM will have over 128 million new unique addresses in 2023. The blockchain could see better days as it plans to launch the Fantom Sonic mainnet in 2924. Data from Artemis shows that FTM’s daily active addresses increased on January 6, 2024.
Following a decline, the blockchain’s daily transactions also gained upward momentum, which can be seen as promising. However, Fantom’s Total Value Locked (TVL) continued to decrease over the past week. FTM’s high network activity could indirectly have a positive effect on the token’s price movement soon. According to CryptoQuant data, FTM’s Relative Strength Index (RSI) is in the oversold region. This could increase buying pressure and lead to a rise in FTM’s price. Additionally, the token’s Money Flow Index (MFI) was also about to enter the oversold region. Furthermore, the Chaikin Money Flow (CMF) recorded an increase, raising the possibility of a downward price movement in the coming days.
