Fantom (FTM) Prices Keep Tumbling Lower as the Project Prepares to Rebrand to Sonic

As of press time, Fantom [FTM], which will soon be rebranded to Sonic, had a bearish outlook on the technical analysis front. Its price action has been largely bearish over the past month. During this period, FTM has noted losses of up to 52.6%.

However, there will be a 1:1 token swap on Binance from the old FTM token to the new Sonic token, which will be denoted by S. Thisịp a part of the strategic plan to introduce Sonic as a new layer-1 blockchain, promising 10,000 transactions a second, which could bolster demand for the token in the coming weeks.

FTM prices keep tumbling lower - Source: FTM/USDT on TradingView

The initial FTM rejection from the $1.44-level occurred on 16 December. Two days later, Bitcoin [BTC] lost 5.6% on the back of bearish news from the U.S FOMC meeting. This accelerated FTM bulls’ troubles.

The 61.8% Fibonacci retracement level at $0.659 offered some respite towards the end of December, but the sellers were too strong. Over the last two weeks, they have forced another new lower low, continuing the downward trend for Fantom.

The RSI has been below neutral 50 for nearly a month now, showcasing firm bearish momentum. More worryingly, the OBV slipped below November’s lows. This reflected huge selling pressure in the market.

Open Interest slides to new lows - Source: Coinglass

It was not only the OBV that made new lows. The Open Interest also hit levels not seen in two years. Together, they highlighted high selling pressure on the token. Nevertheless, the token swap from FTM to S could explain some of these losses.

Due to the swap, traders might be choosing to exit their positions. Moreover, exchanges have announced plans to delist FTM and open Sonic trading pairs. This, combined with the overall bearish market sentiment, could explain the drop in OI and demand.