Fantom traders looking forward to cutting losses should read this
Fantom [FTM] was one of the popular coins on 13 July. Alas, not for a positive reason. It noted a significant drawdown in price, which brought it back to the same levels it was at about a month ago. And, by the looks of it, this might be the new base for Fantom.
Merely days after rising above the state of extreme fear, the Crypto Fear and Greed Index slipped back into the same zone it had been stuck at since May 2022. This was the by-product of the ongoing price falls, but the same only accentuated the sentiment further.
Being one of the victims of the broader market drawdown, Fantom, within the timeframe of 10 to 13 July, noted a fall in price from $2,809 to $2,245. This 20.08% depreciation pushed the altcoin back to its one-month-old level.
Not only did the price take a hit, but the investors’ portfolios were also significantly affected. The recovering profits were flipped into losses. A little under 87% of investors found themselves below their entry price.
Furthermore, a maximum number of FTM investors have witnessed losses in the current sell-off. Evidently, the current market structure isn’t favorable for the altcoin’s network.
A sad front for FTM
On the DeFi front, too, Fantom did not fare well since the consistent fall in price motivated investors to pull their investments from the 252 protocols that exist on the blockchain.
This resulted in the fourth biggest blockchain by Dapps losing almost $90 million in the span of 48 hours, bringing the total value locked on Fantom to just $787 million on 13 July.
Price indicators haven’t been favoring the bulls. Hence, Fantom is registering new lows.
The Bollinger Bands (BB), while diverging, has been indicating volatility in the market. Now, with the candlesticks below the bias, price action might also tread further down.
In fact, the Relative Strength Index (RSI) too stayed below the neutral 50 region without showing any signs of an upcoming rise, at press time. (ref. Fantom price action image).