Fantom's Price Plummets by 34%, On-Chain Signals Hint at Further Pullback

Driven by a sharp decline in daily active addresses and transactions, the price of Fantom (FTM) has plummeted 34% since its March 23 peak, reaching a low of $0.80 on April 3. On-chain data suggests a continuation of the downtrend, with a potential target of $0.64. However, if FTM can hold above this level, it could rally towards $1.80.

Fantom's Price Slumps 34%, On-Chain Indicators Point to Further Downside

Key Takeaways:

• FTM's price has depreciated by 34% from its peak of $1.22, reaching a low of $0.80.
• A decline in daily active addresses, transaction volume, and exchange netflow signals a potential further downturn.
• The next target for FTM is $0.64, a break below which could lead to a significant drop.
• Maintaining support above $0.64 could provide a potential rebound opportunity.

Fantom's On-Chain Performance

An analysis of Fantom's on-chain data reveals a bearish trend, indicating a potential for further price declines.

• Daily Active Addresses: A downtrend has been observed in the number of daily active addresses on Fantom, dropping from 1,280 on March 19th to 456 on April 3rd.
• Number of New Addresses: Similarly, the number of new addresses created daily has also declined, falling from 536 on March 19th to 136 on April 3rd.
• Transaction Volume: The daily transaction volume has also exhibited a downtrend, decreasing from 2,300 on March 19th to 558 on April 3rd.
• Exchange Netflow: The exchange netflow, which measures the difference between FTM deposits and withdrawals on exchanges, has been positive since the end of March, indicating increased selling pressure.

Fantom's Price Analysis

FTM embarked on a bullish cycle in October 2023, reaching an initial high of $0.57 in December 2023. However, the price subsequently declined to $0.30 in January 2024. This initial price action represented the first stage of a larger five-stage cycle.

Throughout March 2024, FTM rallied to $1.20, but faced resistance at $1.15. This progression aligns with the third segment of the five-part pattern.

The current price decline suggests a potential pullback into the fourth phase of the cycle. The next target for FTM is $0.64, where the 0.618 Fibonacci level is located. A break below $0.64 could lead to a significant drop.

On the other hand, if FTM maintains support above $0.64 during the anticipated decline, it could potentially rebound towards $1.80.

Conclusion

The combination of on-chain indicators and price action analysis points to a potential further decline in Fantom's price. While the next target is $0.64, a break below this level could lead to a more significant drop. However, maintaining support above $0.64 could present an opportunity for a price rebound.

It is important to note that this analysis does not constitute financial advice. Investors should conduct thorough due diligence and consider their own risk tolerance before making any investment decisions.