Fantom, a once-promising layer-one blockchain, is facing a severe price downturn. The cryptocurrency has plummeted by 20% in the past 24 hours, mirroring the broader cryptocurrency market’s bearish trend. Currently trading at $0.29, FTM has hit a price level not seen since October 2023.
The sharp decline has inflicted significant losses on Fantom holders. On-chain data reveals a grim picture of the token’s performance. The ratio of profitable to loss-making FTM transactions has plummeted to a mere 0.07, indicating that for every profitable transaction, there are nearly 15 resulting in losses. This metric, provided by Santiment, underscores the overwhelming bearish sentiment among Fantom investors.
To make matters worse, a staggering 72% of FTM holders are currently “out of the money,” according to IntoTheBlock. This means the average purchase price of these holders is higher than the current market value. Conversely, only 23% of holders are in profit, highlighting the dire situation for the majority of the Fantom community.
The derivatives market has also been turbulent for FTM. Coinglass data shows that $2.16 million worth of long positions were liquidated in the past 24 hours, marking the highest single-day liquidation for the token in two months. This indicates a significant number of traders betting on FTM’s price rise were caught off guard by the sudden downturn.
Technical indicators are also painting a bearish outlook for Fantom. The Elder-Ray Index, which measures market sentiment, is firmly in negative territory, suggesting strong bearish dominance. Additionally, FTM trading below its 20-day Exponential Moving Average (EMA) indicates a decline in buying pressure.
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Based on these factors, there is a strong possibility of FTM’s price dipping further to $0.25. However, a potential trend reversal could push the price back up towards $0.48.
As the cryptocurrency market remains volatile, Fantom investors are bracing for more challenges ahead. The ability of the Fantom ecosystem to attract new projects and users will be crucial in determining the token’s future trajectory.
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.
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