Fantom (FTM) experienced a period of substantial sell-off, with 37 million FTM tokens being moved from various exchanges over two days. This mass exodus of tokens from exchanges contributed to investors realizing $31 million in profits, highlighting their concerns over the stalled uptrend in the altcoin's price action.
Such large-scale movements of an altcoin usually indicate waning confidence among investors regarding the cryptocurrency's short-term prospects. In FTM's case, the stalled uptrend has left many investors worried about further losses, prompting them to sell their holdings to amplify selling pressure and protect their realized profits from vanishing.
However, the recent price surge could help mitigate these concerns, potentially stabilizing market sentiment for FTM. Active address profitability data reveals that only 10% of participating FTM investors are currently in profit. This marks the lowest level of profitability for investors, indicating a slowdown in selling activity.
Historically, when profitability is this low, fewer investors are inclined to sell, reducing downward pressure on the price. This dynamic could support Fantom’s recovery, as the slowdown in selling may allow the altcoin to maintain its recent gains and build on its upward trajectory, potentially aiding FTM in regaining crucial price levels over the next few weeks.
FTM Price Prediction: Aiming at $1
Over the past 24 hours, FTM's price experienced a 23.88% increase, pushing the altcoin past the critical $0.83 resistance level. As of now, FTM trades at $0.84, aiming to secure this rise and sustain its bullish momentum. Maintaining a presence above this level is crucial for keeping market optimism afloat.
If FTM manages to bounce successfully off the $0.83 support level, it could continue its uptrend, allowing the altcoin to recover from the 52% losses incurred during the second half of December. Reclaiming $1.03 as support would mark a significant milestone, restoring investor confidence and signaling further growth potential.
However, failing to hold above $0.83 could result in a retracement to $0.76, invalidating the bullish outlook. This scenario would erase part of the recent gains, leaving Fantom vulnerable to a deeper decline toward $0.66. Sustained momentum is critical to avoiding further setbacks.
