Fantom (FTM) price movement is encountering some resistance in its uptrend, with the potential for further decline. The likelihood of the cryptocurrency dropping by 20% is increasing since investors aren’t offering much backing to FTM.
Fantom Investors Withdraw
Fantom price was performing quite well over the past month, charting a nearly 180% increase. However, the recent couple of days witnessed the cryptocurrency declining on the daily chart. While some of this might be attributed to the broader market’s bearish signals, most of it has to do with the FTM holders.
The amount available on exchanges saw a sharp increase in the last 48 hours as investors sought to sell their holdings. Over 13 million FTM was offloaded, bringing the total exchange holdings to 657 million FTM. This is a clear indication of profit-taking, and this trend is likely to persist as FTM holders aim to secure their gains before Fantom price decreases.
In situations where selling remains consistent, altcoins prices typically refrain from declining, provided that investors’ involvement in on-chain activities is substantial. However, this isn’t the case for Fantom, as the number of active addresses on the chain has been significantly decreasing for the past week.
A decrease in participation disrupts the balance between supply and demand of the asset, resulting in price drops, which is the probable outcome.
FTM Price Forecast
Fantom price, which was following a parabolic curve pattern, was anticipated to undergo a correction soon. According to our forecast, a 31% decline was expected, which is the path that FTM has taken.
The altcoin failed to surpass the resistance of $1.12 and descended below the support level of $1.03. However, the decline isn’t over yet as Fantom’s price remains susceptible to further decrease. A 20% downturn would bring it to the base 3 level marked at $0.80, which is the probable outcome of the pattern.
Nonetheless, since the base 3 support range has previously been tested as resistance, the Fantom price might test it as support. Rebounding off the upper limit of the support range at $0.88 would allow FTM to reclaim $1.03 as support. This would invalidate the bearish scenario and enable the cryptocurrency to attempt to breach $1.12 again.
About Fantom
Fantom is a high-performance, scalable decentralized platform for smart contracts. It utilizes a directed acyclic graph (DAG) structure and boasts compatibility with the Ethereum Virtual Machine. This allows Fantom to support smart contracts and decentralized applications (dApps) written in Solidity.
The network’s fast transaction speeds and low fees have fostered a thriving ecosystem encompassing various projects, including decentralized exchanges (DEXs), lending protocols, and NFT marketplaces. The native FTM token serves multiple purposes within the Fantom ecosystem. It facilitates transaction fees, node operation, and overall project governance. As of this writing, FTM ranks 48th among the top 100 cryptocurrencies, boasting a market capitalization of $$2,750,148,948 according to coinmarketcap.
