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Fantom (FTM) has endured a brutal 52.6% decline over the past 26 days, with selling pressure mounting and pushing the token to new lows. This sharp downturn has left the token in a precarious position, raising concerns about its immediate future as the network prepares for a major rebranding with the launch of Sonic—a new layer-1 blockchain. Despite promises of innovation, the transition to Sonic could intensify market uncertainty in the short term.
#Fantom's sell-off escalates with 52% losses – Are more incoming? https://t.co/cxQCwY8cDg
— AMBCrypto (@CryptoAmb) January 11, 2025
Selling Pressure Piles On
Fantom’s recent price action has been heavily bearish. Signs of trouble emerged on December 16 when FTM rejected the $1.44 resistance level, signaling waning bullish momentum. This rejection was soon compounded by broader market weakness, including Bitcoin’s 5.6% drop, exacerbating downward pressure on the token.
The 61.8% Fibonacci retracement at $0.659 provided brief relief, but sellers quickly seized control, pushing FTM to form a fresh lower low. The overall trend remains firmly bearish, with no clear signs of recovery on the horizon.
Bearish Indicators Mount
Technical indicators show little sign of stabilization. The Relative Strength Index (RSI) has been stuck below the neutral 50 level for weeks, indicating persistent bearish momentum. Moreover, the On-Balance Volume (OBV) has fallen below the lows set in November, reflecting heightened selling pressure. Open Interest (OI) has also reached two-year lows, signaling traders may be exiting positions in anticipation of the upcoming token swap or the rebranding to Sonic.
Exchanges have begun to delist FTM in favor of Sonic trading pairs, reinforcing the bearish sentiment. This shift reflects traders’ preparations for the transition, which could further dampen demand in the near term.
Uncertain Future Amid Rebranding
While the introduction of Sonic aims to provide a fresh start, the immediate outlook for Fantom remains highly uncertain. The intensity of selling pressure continues to weigh on the token, and the broader market sentiment is predominantly pessimistic. As exchanges transition to the new network, traders and investors must remain vigilant, closely monitoring for any potential reversal signals or further losses.
Also Read: Can Fantom (FTM) Break Above $0.65? Key Levels to Watch for a Potential Rally
Fantom’s journey to Sonic could reshape the ecosystem in the long term, but in the short term, it appears to be navigating turbulent waters. For now, traders must tread carefully and prepare for potential volatility in the coming months.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
