The Latest Downtrend in Fantom Cryptocurrency Amidst Growing Selling Pressure
Within the past 24 hours, Fantom’s [FTM] value has taken a dip of 3.05%, dropping down to $0.78 as indicated by CoinMarketCap.
Should this trend persist, there’s a risk of wiping out the gains made during the week and exacerbating the already substantial monthly losses that have surpassed 40%.
The recent drop in price seems to be a result of significant sales conducted by large holders, leading to expectations of further declines if the trend continues.
Increased Large-volume Sales by Whales
Data from IntoTheBlock shows a notable uptick in activity by big traders – often known as whales – in the FTM market over the last day.
During this timeframe, 184 transactions by whales were documented, involving a total of 93.31 million FTM valued at $74.8 million. Such heightened activity typically indicates significant movements in the market.
When a surge in trading volume aligns with a price drop like seen with FTM, it suggests that many of these major transactions involve selling, rather than buying.
Supporting this, an analysis by CryptoCrypto underlines a prevailing bearish sentiment within the market.
Growing Concern among Major FTM Holders
Data from IntoTheBlock indicates a widening gap between bullish and bearish sentiments among significant FTM holders.
Over the past seven days, there have been 139 bullish addresses compared to 148 bearish ones, underscoring a shift towards bearish dominance.
These addresses collectively hold at least 1% of FTM’s total supply, with recent activities suggesting an escalation in selling pressure.
Moreover, the average transaction size surged significantly in the last 24 hours, hitting about $38,500 presently, with a seven-day average rising to $32,000.
This indicates substantial amounts are likely being offloaded in each trade.
As bearish sentiment among whales continues to rise and transaction sizes remain large, FTM’s value encounters added downward pressure from retail traders.
Shift to Bearish Sentiment among Retail Participants
Retail traders are increasingly displaying bearish sentiment, with both spot and derivative traders joining the selling activities.
Spot traders are progressively moving FTM to exchanges, with $497,370 worth of the asset deposited into exchange wallets on January 7th.
When assets transfer from wallets to exchanges and the exchange netflow turns positive, it typically signals a surge in selling pressure and an uptick in FTM supply on exchanges.
Derivative traders reflect this bearish sentiment with Open Interest steadily decreasing, down by 7.34% to $92.62 million in the last 24 hours.
Such a decline often indicates participants closing contracts, displaying a diminishing confidence as bearish sentiment strengthens.
With several key indicators pointing towards a bearish trajectory, it’s likely that FTM could see further declines in the immediate future.