FTM Price Eyes Further Decline Despite Sonic Upgrade
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Key Takeaways
The much-anticipated Sonic upgrade has failed to sustain bullish momentum for FTM.
Despite the initial rally to $1.40, FTM bears have pulled the price down to $0.64.
Data shows that the risk of accumulating FTM at its current price remains high.
In 2024, layer-1 blockchain Fantom announced it would upgrade to Sonic. The development would also see FTM transition to a new ticker called “S.”
The disclosure at that time triggered increased demand for the token. As a result, the FTM price climbed to a nearly three-year high of $1.40 in December 2024.
Fast-forward to today. As the Sonic upgrade nears completion and gains support from multiple exchanges, FTM’s bullish momentum has taken a sharp turn.
Over the past 24 hours, the altcoin’s value has plunged by 15%, fueling speculation that the long-anticipated upgrade might be a “sell the news” event.
At the time of writing, FTM changed hands at $0.64—down 48% over the past month.
Besides the broader market decline, FTM’s price decrease could be linked to high selling pressure from sellers.
According to IntoTheBlock’s Bulls and Bears indicator, market sentiment over the last seven days leaned slightly bearish. The data revealed 149 bulls compared to 161 bears.
The dominance of bears, if sustained, suggests that FTM might continue to slide.
FTM Bulls and Bears Indicator | Credit: IntoTheBlock
Furthermore, the Sharpe ratio, which measures the potential risk-to-reward on buying an asset, supports this thesis.
Typically, a Sharpe ratio with readings between 1 and 3 indicates that an asset will potentially offer good returns. However, a rating below 1 signifies otherwise.
Data from Messari reveals that the FTM’s Sharpe ratio stands at 0.70. Given the condition above, this indicates that accumulating the token at the current price is likely to bring about more losses.
FTM Sharpe Ratio | Credit: Messari
FTM Price Prediction: No Recovery in Sight Yet
From a technical standpoint, the daily chart shows that the formation of a head-and-shoulders pattern contributed to FTM’s price decrease.
As seen below, FTM’s price has dropped below the neckline at $0.99. It also trades below the 0.236 Fibonacci retracement level, indicating that a rebound is unlikely in the short term.
FTM Daily Chart | Source: TradingView
If this trend continues, FTM could decline to $0.53. However, if buying pressure increases, the price could rise above the neckline at $0.99. If validated, then the token could jump to $1.27.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
