Fantom (FTM) Investors Endured a Brutal Week, Witnessing Their Holdings shrink by more than 20% in just seven days. The latest blow came in the last 24 hours, with a drop of almost 10%, leaving the token hovering around $0.37.
This sharp drop in prices stands in stark contrast to Fantom’s encouraging increase in network activity, raising questions about the cause of the disconnect.
While increased transactions and user engagement are generally considered positive indicators for a blockchain project, Fantom’s price remains stubbornly bearish.
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Will Fantom Network Volume Increase FTM Price?
This suggests that external factors, potentially broader market sentiment or negative news regarding the project, play a larger role in shaping the token’s value.
Investors now find themselves grappling with the uncertainty of whether Fantom’s strong network activity will be enough to overcome these headwinds and paint its chart green again.
FTMUSD trading at $0.39 on the daily chart: TradingView.com
FTM Price Analysis
The path forward for Fantom remains shrouded in a degree of mystery. A close look at technical indicators and a deeper analysis of the broader market and project-specific news will be crucial in deciphering the token’s next move.
Fantom (FTM) has faced a recent price drop, prompting a closer investigation into investor behavior. The analysis reveals a contradictory picture.
While FTM tokens held by whales and large transactions exceeding $100,000 have both seen declines, suggesting potential long-term support, a different story is unfolding when it comes to exchange activity.
Supply on exchanges has increased steadily since December 23, indicating increased selling pressure and a likely contributor to the current price decline.
Meanwhile, FTMs held outside exchanges have declined, pointing to potential accumulation by long-term investors.
This divergent picture suggests a temporary imbalance between selling and buying forces, pushing FTM lower in the short term.
However, underlying support from major stablecoins and reduced whale activity could offer a glimmer of hope for a potential long-term rebound.
Despite the poor market conditions in 2023, @FantômeFDN has grown and shines like a phoenix from the ashes 📈
👻 #Ghost had over 128 million new unique addresses in 2023 and is ranked 3rd compared to other major EVM blockchains 🎉
😍 With the launch of the mainnet of… pic.twitter.com/oA27loqrtf
– Fantom Insider (@fantom_insider) January 7, 2024
As the token’s value declined, Fantom Insider took to Twitter to unveil a notable achievement for Fantom in 2023.
The tweet highlighted that, despite the token’s temporary slowdown, FTM had achieved an impressive position, ranking third in terms of unique addresses among Ethereum virtual machine (EVM) blockchains for the year.
This disclosure positioned Fantom closely behind established entities such as Polygon and Binance Chain, signaling remarkable success for the platform in expanding its user base and ecosystem engagement throughout the year 2023.
(Featured image from Zipmex)
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