Assessing whether Fantom’s latest achievement can boost FTM
- Though positive sentiment around the token improved, its price action was against investors’ interest.
- Fantom’s market indicators also remained in the bears’ favor.
Fantom [FTM] recently made a noteworthy achievement. It was among the six chains that repeatedly appear in the top 10 by DEX volume since March 2021, when cryptocurrencies first witnessed new ATHs. Although investors’ willingness to trade FTM remained high, the token’s price didn’t correspond. This was evident from its weekly price action.
Realistic or not, here’s FTM market cap in BTC‘s terms
Analyzing Fantom’s achievements
Nick.ftm, a popular Twitter user, recently revealed in his tweet that Since its rise, Fantom has operated smoothly as a top Layer 1 with massive DEX volume (good metric of real users/usage), and is among good companies. The tweet also mentioned that the Fantom Foundation’s treasury is diversified across different crypto and non-crypto assets.
The biggest impact was on the value of its multi tokens that were held long term. As per the tweet, the foundation will continue to develop and grow the ecosystem for the long term.
From a list of 112 blockchains, only 6 chains show up repeatedly (80%+) in the Top 10 by DEX volume since March 2021 when crypto first saw new ATHs.#Fantom is one of them.
The others are Ethereum, Polygon, BSC, Avalanche and Arbitrum.
This next sentence applies to the above… pic.twitter.com/91LCYMv8Xk
— Nick.ftm (@Nick_SR5) July 21, 2023
Though these achievements look optimistic, the token’s price action was not up to par as it went bearish. According to CoinMarketCap, the token’s price went down by over 6% in the last seven days, which was bearish.
At press time, it was trading at $0.2554 with a market capitalization of over $715 million. Its volume and 4-week price volatility plummeted last week, suggesting that investors were not willing to trade the token.
How is Fantom faring in the market?
Despite its negative price action, a few of the metrics looked bullish on the token. For instance, the token’s supply on exchanges registered a decline while its supply outside of exchanges went up.
This was a bullish metric, suggesting a price uptick. Positive sentiment around the token also spiked in the last few weeks, which reflected investors’ confidence in FTM.
Read Fantom’s [FTM] Price Prediction 2023-24
A look at Fantom’s daily chart suggested that investors might have to wait longer for an uptrend as most of the market indicators remained bearish.
For instance, the token’s Money Flow Index (MFI) was resting way below the neutral mark. FTM’s Chaikin Money Flow (CMF) also registered a downtick, further increasing the chances of a continued downtrend. On top of that, the Exponential Moving Average (EMA) Ribbon continued to be in the sellers; favor.