Fantom (FTM) is down 12% in the past 24 hours as it approaches key support levels.
The recent shift in market sentiment is supported by the migration to the new Sonic token, which signals a broader trend in the network.
“The number of whale wallets holding 1M-10M FTM tokens has dropped to record lows, and there is a shift in anxious sentiment among major investors,” a COINOTAG observation reads.
Fantom’s price is down 12% and is approaching $0.84, while a decrease in whale activity is observed. The process of FTM’s transition to Sonic token reveals a weak market sentiment.
The Average Directional Index (ADX) rose to 39.94 for FTM, marking a significant increase from levels below 20 a few days ago. This dramatic rise suggests that the downtrend is gaining strength and prices could decline further.
The current price action of FTM suggests that a high ADX indicates sustained selling pressure. Traders should be prepared for further declines if buying interest does not increase in the short term. ADX is an indicator that measures trend strength on a scale of 0 to 100, with values above 40 indicating a strong trend. FTM’s price action should be monitored carefully.
With the ADX approaching 40, it appears that bearish momentum is prevailing and investors should expect further losses unless buying interest increases.
The data shows that the number of wallets holding between 1 million and 10 million FTM has fallen to 77, the lowest level since December 1. This acts as a barometer of market sentiment among whale wallets, with fluctuations signaling possible changes in price action.
The decline in these high-value wallets indicates a loss of confidence among large investors, which generally has a negative impact on price stability and future movements. While the number of whale wallets peaked at 81 on December 6, the continued decline suggests a lack of aggressive selling. This indicates a weakness in market participation and could lead to a pause or further depreciation in prices on the FTM.
Fantom is currently trading at around $0.84, with resistance around $1. Given current market conditions, if the $0.84 support level cannot be maintained, prices could fall significantly and drop to the next critical support level at $0.64. This would potentially represent a 33% correction.
If the price manages to break above the $1 resistance level, there could be a positive shift in market sentiment and this could start an uptrend towards $1.13. Any continuation of such a rally would depend on increased buying interest, which would be critical for reversing the current downtrend and for prices to recover.
