Fantom Price Plunges Sharply

What is Happening with FTM?

On-chain transaction data shows that FTM holders are currently facing more losses than gains. The profit/loss ratio of daily transactions stands at 0.07, suggesting that for every profitable transaction, there are significantly more unprofitable ones. This metric highlights the tough trading environment.

Furthermore, 80,000 wallet addresses, accounting for 72% of all FTM holders, are currently out of the money. An address is considered out of the money if the current market price of FTM is lower than the average acquisition cost of the tokens. Conversely, only 23% of holders are realizing profits.

Why are Futures Investors Affected?

Futures investors are also bearing the brunt of this downturn. Recent data indicates that several long positions, totaling $2.16 million, were liquidated in the past 24 hours. This marks the highest single-day long liquidation for FTM in two months, illustrating the bearish sentiment prevailing in the market.

Concrete Insights

• Monitor on-chain transaction data to gauge market sentiment.
• Exercise caution with long positions in a bearish trend.
• Track the Elder-Ray Index for insights into buyer and seller dynamics.
• Observe the 20-day EMA to understand short-term price trends.

FTM Chart Analysis

Technical analysis of FTM’s daily chart suggests that further declines are likely. The Elder-Ray Index, which measures the strength between buyers and sellers, currently stands at -0.19, indicating a strong bearish trend. Additionally, FTM is trading below its 20-day exponential moving average (EMA), which signals increased selling pressure. If this trend persists, FTM’s value could fall to $0.25. However, a trend reversal could see prices rebound to $0.48.

In conclusion, FTM’s current market performance is concerning for investors. The significant price drop, combined with bearish technical indicators, suggests that caution is warranted. Keeping an eye on key metrics and trends will be crucial for navigating this volatile market.