Fantom (FTM) investors have endured a brutal week, witnessing their holdings shrink by over 20% in just seven days. The latest blow came within the past 24 hours, with a nearly 10% plunge leaving the token hovering around $0.37.
This stark price decline stands in stark contrast to the encouraging surge in Fantom network activity, raising questions about what’s driving the disconnect.
While increased transactions and user engagement are typically seen as positive indicators for a blockchain project, FTM’s price remains stubbornly bearish.
Related Reading: Polygon NFTs Explode: 6-Month High Volume Ignites Market – Details
Will Fantom Network Volume Lift FTM Price?
This suggests that external factors, potentially broader market sentiment or negative news surrounding the project, are playing a more significant role in shaping the token’s value.
Investors are now left grappling with the uncertainty of whether FTM’s robust network activity will be enough to overcome these headwinds and paint its chart green again.
FTM Price Analysis
The path forward for FTM remains shrouded in some degree of mystery. A close examination of technical indicators and further analysis of the broader market and project-specific news will be crucial for deciphering the token’s next move.
FTM has faced a recent price slump, prompting closer investigation into investor behavior. Analysis reveals a contradictory picture.
While FTM tokens held by whales and large transactions exceeding $100k have both seen a decline, suggesting potential long-term support, a different story unfolds regarding exchange activity.
Supply on exchanges has steadily risen since December 23rd, indicating increased selling pressure and a likely contributor to the current price dip.
Meanwhile, FTM held outside of exchanges has dwindled, hinting at 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, the underlying support from stable top holdings and reduced whale activity might offer a glimmer of hope for a potential rebound in the longer term.
Despite the bad market condition in 2023, @FantomFDN has been growing and shining like a phoenix from the ashes
#Fantom has had 128M+ new unique addresses in 2023 and is ranked in 3rd place compared to other top EVM blockchains
With the mainnet launch of… pic.twitter.com/oA27loqrtf
— Fantom Insider (@fantom_insider) January 7, 2024
As the token faced a decline in value, Fantom Insider took to Twitter to unveil a notable accomplishment for Fantom in 2023.
The tweet highlighted that, despite the token’s temporary downturn, FTM had secured an impressive position, ranking third in terms of unique addresses among Ethereum Virtual Machine (EVM) blockchains for the year.
This disclosure positioned FTM closely behind established entities like Polygon and Binance Chain, signaling a noteworthy achievement for the platform in expanding its user base and ecosystem engagement throughout the course of 2023.
(Featured image from Zipmex)