Is Fantom undergoing a price correction? Assessing…

• FTM’s MFI entered the overbought zone, which might have increased selling pressure. 
• Market sentiment around Fantom also turned bearish.

After a comfortable bull rally, Fantom [FTM] witnessed a major price correction over the last few hours, punching its price down. This happened at a time when several expected the token’s price to surge further. A closer look at the blockchain provided a better understanding of what was actually going on and what investors should expect from FTM over the days to follow.

Read Fantom’s [FTM] Price Prediction 2023-24

How is Fantom doing?

Fantom Insider, a popular X (formerly known as Twitter) handle, mentioned in a tweet about FTM’s performance during the recent bull market. As per the tweet, the price of FTM has shown strong growth in recent days amidst a bullish market.

In just the last four days of the week, the price of FTM has surged by over 12%, reaching $0.209.

However, the uptrend did not last long, as the scenario soon changed in the sellers’ favor. According to CoinMarketCap, FTM’s value dropped by more than 2% in the last 24 hours. At the time of writing, it was trading at $0.2014 with a market capitalization of over $564 million.

A check of FTM’s daily chart revealed quite a few factors that could have contributed to Fantom’s latest price decline. FTM’s Money Flow Index (MFI) entered the overbought zone, which could have increased selling pressure on the token.

Its Chaikin Money Flow (CMF) and Relative Strength Index (RSI) both registered downticks. Nonetheless, the MACD gave much-needed hope as it continued to remain in the buyers’ favor.

Source: TradingView

Going forward

While the token’s price dropped, its social mentions also plummeted by more than 50% in the last 24 hours. As per LunarCrush, bullish sentiment around FTM also sank by nearly 60%.

Another bearish metric was its Altrank, which increased substantially in the last 24 hours.Source: LunarCrush

How much are 1,10,100 FTMs worth today    

The token’s daily trading volume surged while its price dropped, which was a negative signal. Additionally, the MVRV ratio also dropped over the last few days.

It was interesting to note that FTM’s Binance funding rate turned green while its price plummeted, meaning that investors in the derivatives market were buying the token at a lower price. However, Coinglass’ data revealed that Fantom’s open interest dropped slightly along with its price, which was a bullish signal.    

Source: Santiment