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Fantom (FTM) has experienced a drastic decline, dropping over 12% in just 24 hours, as the cryptocurrency nears critical support levels.
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The latest shift in market sentiment is underpinned by the transition to the new Sonic token, reflecting a broader trend within the network.
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As a notable observation from COINOTAG, “whale wallets holding 1M–10M FTM tokens have reached their lowest levels, indicating a concerning sentiment shift among large holders.”
Fantom’s price drops 12%, nearing $0.84 support. Whale activity diminishes, revealing weak sentiment as FTM transitions to the Sonic token.
Fantom’s Current Downtrend Is Showing Its Strength
The Average Directional Index (ADX) for FTM has surged to 39.94, marking a significant shift from below 20 just days ago. This dramatic increase signals that the strength of the bearish trend is intensifying, elevating the potential for further price declines.
Given FTM’s current trajectory, the elevated ADX suggests sustained selling pressure, indicating that traders should brace for continued downward movements without signs of any substantial buying interest emerging in the short term.
The ADX is a crucial indicator that assesses trend strength, on a scale from 0 to 100. Readings above 40 indicate a robust trend, which underscores the urgency of monitoring FTM’s price movements closely.
With the ADX nearing 40, bearish momentum appears to dominate, leading traders to anticipate further declines unless buying activity significantly increases.
Whales Are Not Accumulating FTM
Data shows that the total number of wallets holding between 1 million and 10 million FTM has declined to 77, the lowest figure since December 1st. This trend among whale wallets often serves as a barometer for market sentiment, with fluctuations indicating potential shifts in price dynamics.
The decrease in these high-value wallets reflects a waning confidence among substantial holders, typically impacting price stability and future movements.
Although the number of whale wallets peaked at 81 on December 6, ongoing declines suggest a lack of aggressive selling behavior. This situation might signal a fundamental weakness in market participation, potentially leading to stagnant prices or further depreciations in FTM.
Fantom Price Prediction: Can FTM Correct By 33% Next?
Currently, Fantom is trading at around $0.84, with resistance projected around the $1 mark. Given the current market conditions, if the support at $0.84 fails to hold, the price could fall significantly, targeting the next critical support at $0.64, indicating a potential 33% correction.
If the price successfully breaks through the $1 resistance level, it could signal a positive market sentiment shift, potentially leading to a rise towards $1.13. Sustaining such an uptrend would hinge on increased buying interest, crucial for reversing the prevailing downtrend and fostering recovery.
Conclusion
Fantom (FTM) faces significant challenges as it navigates a pronounced downtrend coupled with diminishing whale activity. Traders and investors should remain vigilant, monitoring both support levels and broader market sentiments to make informed decisions. The cryptocurrency’s ability to reverse its current fate hinges not only on technical price movements but also on the sentiment shift amongst larger holders.
