Will Fantom’s network activity help FTM beat the bears?
- Fantom’s network activity remained high as its unique addresses climbed.
- Market indicators suggested the possibility of a trend reversal.
Fantom [FTM] investors have had a tough time over the last few days as the token’s price sank. This happened at a time when the blockchain registered promising growth in terms of its network activity.
However, will high network activity be enough for FTM to paint its chart green?
Fantom’s charts are red!
The last week was somewhat unfortunate for Fantom as it shed its value in double digits. According to CoinMarketCap, FTM was down by more than 23% in the past seven days.
In the last 24 hours alone, the token’s value plummeted by 8.5%. At the time of writing, Fantom was trading at $0.3694 with a market capitalization of over $1 billion.
Since FTM’s price sank substantially, AMBCrypto checked investor behavior. Our analysis of Santiment’s data revealed that FTM’s Supply on Exchanges increased in the last week, while its Supply outside of Exchanges dropped.
This indicated that FTM was under selling pressure at press time.
Whale confidence in FTM also seems to have dwindled, as both its supply held by top addresses and Whale Transaction Count dropped last week.
It was interesting to note that, as per Whalestats, Fantom ranked 27th on the list of the cryptos that the top 100 ETH whales sold in the last 24 hours.
Fantom’s adoption increased in 2023
While the token bled, Fantom Insider posted a tweet revealing one of Fantom’s 2023 achievements. The tweet mentioned that FTM was only behind Polygon [MATIC] and BNB Chain [BNB] in terms of unique addresses of EVM blockchains in 2023.
To be precise, FTM will have had over 128 million new unique addresses in 2023.
Despite the bad market condition in 2023, @FantomFDN has been growing and shining like a phoenix from the ashes 📈
👻 #Fantom has had 128M+ new unique addresses in 2023 and is ranked in 3rd place compared to other top EVM blockchains 🎉
😍 With the mainnet launch of… pic.twitter.com/oA27loqrtf
— Fantom Insider (@fantom_insider) January 7, 2024
As the blockchain plans to launch its Fantom Sonic mainnet in 2924, things can get even better. As of now, AMBCrypto’s analysis of Artemis’ data revealed that FTM’s daily active addresses spiked on the 6th of January 2024.
After a drop, the blockchain’s daily transactions also gained upward momentum, which looked promising. However, Fantom’s TVL continued to decline throughout the last week.
FTM’s high network activity might indirectly have a positive impact on the token’s price action soon. Our look at CryptoQuant’s data revealed that FTM’s Relative Strength Index (RSI) was in the oversold zone.
Read Fantom’s [FTM] Price Prediction 2024-25
This can increase buying pressure, causing FTM’s price to rise.
The token’s Money Flow Index (MFI) was also about to enter the oversold zone. Additionally, its Chaikin Money Flow (CMF) registered an uptick, increasing the chances of a northbound price movement in the days to follow.