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The recent decline of Fantom (FTM) has drawn attention, as both its price and Open Interest reach troubling lows not seen in two years.
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As the crypto landscape continues to evolve, the impending token swap to Sonic is set against a backdrop of significant bearish momentum, emphasizing the need for investor caution.
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According to COINOTAG, “the trajectory of FTM’s market movement will depend heavily on the execution of the token swap to Sonic.” This highlights the critical nature of upcoming developments.
Fantom (FTM) faces historical price lows and declining Open Interest, raising concerns amid an impending rebranding to Sonic and a bearish market outlook.
Fantom prices keep tumbling lower
The recent price action for Fantom (FTM) has showcased a relentless decline, with significant losses marking an ongoing bearish trend. As of now, the token has fallen by 52.6% in just 26 days, a clear indicator of selling pressure from investors. Resistance at the $1.44 level appears to be firmly established, further solidifying the bearish sentiment.
Following a significant rejection at the $1.44 resistance level on December 16, the situation was exacerbated by market reactions to the U.S. FOMC meeting, which saw Bitcoin losing 5.6%. The unfavorable market environment has left FTM vulnerable as sellers dominate the scene.
Despite a brief rally at the 61.8% Fibonacci retracement level of $0.659 in late December, bearish sentiment has led to renewed selling, further forcing the price downwards. The Relative Strength Index (RSI) remains below the neutral 50, reinforcing the notion of a sustained bearish outlook, as the On-Balance Volume (OBV) also reflects heightened selling pressure.
Open Interest slides to new lows
As Fantom (FTM) faces a bearish climate, both Open Interest and On-Balance Volume (OBV) have dropped to levels not observed in two years. This downturn is a critical indicator of market sentiment, underscoring the intensified selling pressure within the crypto ecosystem.
The anticipated 1:1 token swap from FTM to Sonic has raised questions about liquidity as traders adjust their positions prior to the transition. Numerous exchanges are announcing plans to delist FTM and transition to offering trading pairs for the new token Sonic. As demand declines and bearish sentiment looms large, the implications for both Open Interest and market momentum are significant.
Conclusion
The current trajectory for Fantom (FTM) remains troubling, with prices and Open Interest at two-year lows. The upcoming transition to Sonic offers a glimmer of hope for recovery, yet the immediate outlook remains bearish as market conditions continue to react to broader economic signals. Traders and investors should tread carefully and stay informed about further developments to gauge potential recovery or further declines.
