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Fantom (FTM) Sees Demand Plummet to Yearly Low: Price Impact

2 mins
Updated by Ryan James
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In Brief

  • Fantom (FTM) has seen a decline in new demand and network usage, impacting its native token's value negatively.
  • The daily count of new FTM addresses fell from a peak in March to the lowest this year in June, reflecting reduced activity.
  • With an RSI of 34.74, FTM shows decreased buying pressure, potentially slipping below $0.6 unless buying pressure increases.
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Fantom (FTM) has seen a significant decline in new demand in the past few months. This decline in network usage connotes a drop in the demand for its native token, FTM.

Due to this, while the rest of the market logged gains in the last month, the value of FTM trended downward. 

New Users Shun Fantom

The number of new addresses created daily to trade FTM rallied to a year-to-date (YTD) peak of 537 on March 19. On the same day, the number of unique addresses involved in at least one transaction involving the altcoin totaled 1280.

However, after climbing this high, the daily count of new FTM addresses has since declined. As of June 10, only 51 new addresses were created on the Fantom network, the blockchain’s lowest count since the beginning of the year.

The last time Fantom’s daily new address count was this low was September 2023. 

Read More: What Is Fantom (FTM)?

Fantom Network Activity. Source: Santiment

The decline in the daily number of FTM’s new addresses and the resulting drop in the token’s value is partly attributable to the recent low volume of profitable transactions.

An assessment of the FTM’s daily ratio of transaction volume in profit to loss using a seven-day moving average confirmed this. As of this writing, this was 0.44. 

Fantom Ratio of Transaction Volume in Profit to Loss.
Fantom Ratio of Transaction Volume in Profit to Loss. Source: Santiment

This suggests that for every FTM transaction that ended in a loss in the last month, only 0.44 transactions returned a profit. This means that the number of profitable transactions is lower than those that produce gains

FTM Price Prediction: A Dip Below $0.60?

At press time, FTM’s Relative Strength Index (RSI) rested at 34.74, far from its 50-neutral line. This indicator helps traders identify overbought or oversold conditions in a market by measuring the speed and change of an asset’s price movements. 

It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and may be due for a pullback, while values below 30 indicate that the asset is oversold. 

At 34.74, FTM’s current RSI suggests a significant decline in buying pressure. 

Fantom Analysis. Source: TradingView
Fantom Analysis. Source: TradingView

If this trend continues, FTM will slip under the $0.60 price level to exchange hands at $0.51.

Fantom Analysis
Fantom Analysis. Source: TradingView

However, if this is invalidated and buying pressure gains momentum, the bulls may be able to initiate a rally toward $0.70.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Abiodun Oladokun
Abiodun Oladokun is a seasoned cryptocurrency research journalist with a diverse skill set spanning blockchain analysis, technical research, and content creation. He was a prominent figure at AMBCrypto, where he played a pivotal role in conducting market analysis and technical assessments of various cryptocurrencies and digital assets. His proficiency in utilizing on-chain analytics tools, such as Messari, Santiment, DefiLlama, and Dune Analytics, enabled him to gather and analyze on-chain...
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