Introduction
Fantom (FTM) is in trouble. Its price has dropped a lot, losing over 52% in just 26 days. This has made many investors and traders worried. Soon, FTM will change to Sonic, a new version of the token. While some people see hope in this change, others are unsure about what will happen next.
Why Is Fantom Dropping?
The trouble started on December 16. FTM’s price couldn’t stay above $1.44, and two days later, Bitcoin’s price dropped too. This made things worse for FTM. For a short time, the price stopped falling at $0.659, but sellers quickly pushed it lower again. Over the past two weeks, Fantom’s price has hit new lows.
One warning sign is the Relative Strength Index (RSI), which shows how strong buying or selling is. Fantom’s RSI has been below 50 for a month, showing that sellers are in control. Another bad sign is the On-Balance Volume (OBV), which measures buying and selling pressure. The OBV is now lower than it was in November, showing that a lot of people are selling.
Traders Are Leaving
It’s not just the price and OBV dropping. Open Interest (OI), which shows how many active trades are open, has also fallen to its lowest level in two years. This means fewer traders are keeping their positions.
One reason for this could be the upcoming token swap. Fantom will soon change to Sonic, and some traders might be selling their tokens early. Exchanges like Binance are also getting ready for the swap, which could be affecting trading activity.
What Is Sonic?
Sonic is the new version of Fantom. It will be a faster and better blockchain, promising to handle 10,000 transactions per second. This could make it more useful and attractive to developers and users. When Sonic launches, people who own FTM will be able to swap their tokens for Sonic tokens at a 1:1 ratio. Big exchanges like Binance are supporting the swap, which might help build trust in the project.
What’s Next for Fantom?
Right now, Fantom’s price looks weak. The RSI, OBV, and OI all show that sellers are in control. If the price drops further, it might reach $0.5 soon. However, Sonic could be a fresh start for Fantom. If the new blockchain works as promised, it might bring in more users and investors. This could help the price recover in the future. For now, it’s important to watch how the market reacts to the token swap and whether Sonic can deliver on its promises. While things look tough for Fantom, the Sonic upgrade might give it a chance to bounce back.
