Fantom Price Could Drop Significantly According To On-chain Metrics — But What Does FTM Chart Say?
Can Fantom recover? | Credit: Shutterstock
Key Takeaways
- FTM’s price fell 34% to $0.80 after peaking at $1.22.
- Decline in daily active addresses and transactions signals downside.
- The next target is $0.64; maintaining it could lead it to above $1.80.
The price of Fantom reached a yearly high of $1.22 on March 23, after which FTM made a downturn. On April 3, it fell to a low of $0.80, decreasing by 34%. Now, however, there is some on-chain evidence suggesting FTM could face more downside.
Fantom On-Chain Data
Looking at the daily active addresses on IntoTheBlock we can see a downtrend from its March 19 high. This metric decreased from 1,280 at its peak to 456 at its lowest point on April 3.
This is also the case with the number of new addresses being created, as the number went from 536 on March 19 to 136 yesterday. A direct correlation can be seen between these stats and the FTM price, which caused a downturn in this period.
The transaction data also shows the same trend. From its March 19 peak of 2,300 daily transactions, we saw a decline to 558 on April 3. Previously, this metric was in the uptrend, leading the price of FTM on an incline.
The next important on-chain metric is the exchange netflow , which provides insight into the investor’s sentiment. Since the end of March, we saw an increase in FTM deposits to exchanges, leading to a positive netflow.
It reached 2,29 million FTM on April 2, meaning more FTM are being deposited than withdrawn. This activity usually indicates selling pressure as investors. It started to curve down but is still in the positive direction, meaning that the selling pressure diminished but is still present.
Fantom (FTM) Price Analysis
FTM started its new bull cycle from a low of $0.17 on October 18, 2023, It reached its first high of $0.57 by December 25, before decreasing to $0.30 on January 24. These movements are the initial stages of a larger five-stage cycle.
By March 22, FTM had climbed to $1.20, but it faced challenges in breaking past this point over the subsequent days, fluctuating near a resistance level at $1.15.
This progression is the third segment of a five-part pattern starting from the October 2023 low. With the Relative Strength Index indicating overbought conditions on the daily chart, a pullback seems imminent as FTM enters its fourth phase.
With the price still declining, the next milestone is $0.64, where the 0.618 Fibonacci level is located. Should Fantom stay above this threshold during the anticipated decline, it could reach $1.80.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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