As of Wednesday, data shows that the number of Fantom (FTM) coins in cryptocurrency exchange wallets has dropped to 639 million, the lowest level since January 10, 2022. This decline in FTM supply during the Bitcoin-led rally suggests that investors want to hold onto their cryptocurrencies, indicating a potential upward trend.
Fantom (FTM) Insights
Fantom supply on cryptocurrency exchanges rose to 674 million coins on April 4, reaching its peak this year. Since then, it has visibly decreased by 5%.
In short, when the supply of the asset on the exchange decreases, it indicates a reduction in the number of assets available for trading on those exchanges. This is because investors are moving their assets to private wallets with long-term goals.
This movement can be seen as a bullish sign because the decrease in supply and increase in demand can create a positive environment. Additionally, the Average Coin Age of the coin was also reflecting an upward trend, indicating that investors continue to accumulate FTM as its exchange supply decreases.
This metric measures the average age of all coins or tokens on a specific blockchain. Simply put, it shows how long coins have been held by their current owners on average. This upward trend suggests that coins are being held for increasingly longer periods. As of the time of writing, the Average Coin Age of FTM was 631.
Future of FTM
As of the time of writing, the FTM price fell by 8.23% to $0.4748, following the decline in BTC. Its value had decreased by 2.34% over the past month. The Parabolic SAR indicator suggested a potential rally. As of the time of writing, the indicator’s points remained below FTM’s price, continuing in the same direction since July 9.
The Parabolic SAR indicator reveals the potential trend direction and reversal points of an asset. When the points remain below the asset’s price, it indicates a bullish trend. If the trend continues, FTM could move towards a target of $0.57 and settle above $0.5. Conversely, if a reverse trend occurs, the cryptocurrency’s value could drop to $0.37.
