Fantom (FTM) Plunges Amid Investor Sell-off and Bearish Indicators

Amid waning investor interest and rising selling pressure, the price of Fantom (FTM) has undergone a significant correction. The increasing supply of FTM on exchanges since March 25 suggests that the downtrend may continue for an extended period, with the death cross pattern on the 4-hour chart indicating the potential for further declines towards the $0.71 support zone.

Fantom (FTM) Experiences Significant Correction as Investor Interest Wanes

The price of Fantom (FTM), a popular decentralized finance (DeFi) platform, has undergone a substantial correction amid waning investor interest and rising selling pressure. This development has raised concerns about the long-term viability of the altcoin, prompting analysts to issue cautious predictions and identify potential buying opportunities for discerning investors.

Declining Holder Count and Rising Exchange Supply

Between March 17 and 28, the number of Fantom holders increased slightly, rising from 109,930 to 111,280. However, this growth was accompanied by a surge in the asset's price, which soared from $0.78 to a local peak of $1.25.

Subsequently, from March 28 onwards, the momentum began to wane, leading to a sharp correction that pushed the price down to $0.84. This decline was exacerbated by a rapid decrease in the number of holders, a bearish sign that reflects weakening investor interest and a potential shift in sentiment.

Furthermore, the supply of FTM on exchanges increased from 654.83 million to 670.73 million tokens. This indicates that an increasing number of traders are losing confidence in the future dynamics of the altcoin and are willing to sell their coins at the current price.

Technical Indicators Signal Further Downside

The exponential moving averages (EMA) on the 4-hour Fantom chart have formed a "death cross," a technical pattern that suggests the possibility of a major sell-off. If the downtrend continues, FTM price may approach the $0.71 support zone. Failure to hold this level could trigger a further fall to $0.65.

Alternatively, a break above the $0.98 resistance level would pave the way for a retest of the $1.22 zone, potentially signaling a bullish reversal.

Key Levels to Watch for Potential Buying Opportunities

FTM price has followed the broader market trend in recent days, declining in tandem with other altcoins. However, analysts caution against blindly buying into any price dip and recommend exercising patience until a clear buying opportunity presents itself.

One such potential buying opportunity could emerge if FTM price declines approximately 15% to hover around the $0.6467 level. This would coincide with a decrease in broader markets and would provide an entry point for investors who believe that the downside momentum has run its course.

Multiple technical indicators support the possibility of further downside momentum, including the plummeting Relative Strength Index (RSI) and the red volume indicator, both of which suggest growing bearish sentiment.

Conclusion

The recent correction in Fantom (FTM) price has raised concerns about the long-term viability of the altcoin. Waning investor interest, rising selling pressure, and bearish technical indicators all point towards the possibility of further downside in the near term. However, discerning investors may identify potential buying opportunities as the market stabilizes and sentiment improves.