- FTM has dropped 52% in 26 days, driven by intense selling pressure.
- The upcoming token swap to Sonic and delisting contribute to declining Open Interest.
- Despite losses, Sonic’s potential as a new layer-1 blockchain may bring future demand.
Fantom—FTM, has seen a massive 52.6% loss in just 26 days. This sharp decline has triggered widespread selling and continues to weigh heavily on the price. The token’s future now looks uncertain, especially with the upcoming 1:1 token swap to the new Sonic token. With its promise of a new layer-1 blockchain, Sonic could boost demand in the future.
Selling Pressure Piles On
Fantom’s price action has been undeniably bearish over the last month. The first signs of trouble appeared on December 16, when FTM rejected the $1.44 resistance level. Shortly after, Bitcoin’s 5.6% drop added extra pressure on an already struggling market.
This combination of factors further fueled the downward momentum. The 61.8% Fibonacci retracement at $0.659 provided some temporary relief, but sellers quickly regained control. They pushed the price lower, creating a fresh lower low and extending the overall bearish trend.
Bearish Indicators Mount
Looking at technical indicators, things don’t look any better for Fantom. The Relative Strength Index (RSI) has been firmly below neutral 50 for weeks, which points to persistent bearish momentum. Even more concerning, the On-Balance Volume (OBV) has dropped below the lows set in November, signaling heightened selling pressure. Open Interest (OI) has also fallen to levels not seen in two years.
This suggests many traders are opting to exit their positions, possibly due to the upcoming token swap or the overall market sentiment. The shift from FTM to Sonic might be behind some of this decline, as traders prepare for the changes. Furthermore, exchanges have announced plans to delist FTM and list Sonic trading pairs, adding to the current bearish outlook.
While the rebranding to Sonic could eventually spark demand, Fantom’s immediate future remains uncertain. Selling pressure is still intense, and the market’s mood is largely pessimistic. Traders and investors need to stay vigilant, watching for signs of a possible reversal or further losses.
