Fantom: Bullish projections come to a naught because of this
FTM, the native coin of the Fantom Foundation, saw a hike in its social metrics last week. According to data from Lunarcrush, the alt grew its Galaxy Score to a high of 74 out of 100, which was an indication of a perceived bullishness in the coin’s social and market activity.
Failed to live up to expectations
In spite of the bullish projections for FTM’s price, its price declined by 20% in the last week. According to CoinMarketCap, FTM traded for $0.2237 at press time. A week ago, this cost $0.25.
Not left out of the price/trading volume divergence that has plagued the general cryptocurrency market in the last 24 hours, FTM has also failed to see any support from its buyers within the same period. Its price was down 11% in the last 24 hours, while its trading volume was up by 114%.
Unsurprisingly, FTM logged a daily decline in unique active addresses that traded the asset in the last week. According to data from Santiment, daily active addresses that traded FTM within the 7-day period fell by 59%.
Within that period, the aggregate number of FTM coins across all transactions that were completed daily also dropped by over 1000%. This value in USD represented a drop from $16.54 million to $768,000.
Interestingly, despite the significant drop in the price of FTM in the last week, further data from Santiment hinted at a decline in sell-offs.
The asset’s Exchange Flow Balance on a 7-day moving average posted a negative -25k at press time. When the Exchange Flow Balance of a crypto asset posts a negative value, it shows that there is less sell-off risk with coins moving to offline wallets.
A look at FTM’s supply on exchange in the last seven days supported this position. It declined by 4% in the last week showing growth in buying pressure for the asset.
The decline in the price of FTM in the last week, despite on-chain indications that there were fewer sell-off, mirrors the decline in the entire crypto market within the same period.
Also, it shares a statistically significant negative correlation with Bitcoin [BTC], which itself logged a 17% decline in the last week and traded at a 3-months low.
On a broader horizon, not much price growth is in store for FTM. The asset has remained dormant in addresses in the last three months. For any significant asset price growth, these dormant FTM coins need to change hands.