Fantom (FTM) Price Prediction: More Pains Lie Ahead as the Altcoin Falls by 20%

Fantom's (FTM) price has fallen by 20% in the past 24 hours amid the broader market downturn. Exchanging hands at $0.29 at press time

Fantom (FTM) price has seen a 20% decrease over the last 24 hours, as the broader market downturn continues to impact the altcoin. Trading at $0.29 at press time, FTM is now observed trading at a price low last seen in October 2023.

FTM’s price movements over the last 24 hours have resulted in heavy losses for many holders. While its spot market has recorded fewer profitable transactions, its derivatives market has seen a surge in long liquidations.

FTM Holders Sell At a Loss

An analysis of the ratio of FTM’s daily on-chain transaction volume in profit to loss reveals that coin holders have largely seen more losses than profits in the last 24 hours. At press time, the metric is valued at 0.07.

This metric assesses the total volume of FTM transactions, resulting in a profit for the sender, compared to the total daily on-chain transaction volume. At 0.07, it indicates that for every transaction resulting in a loss today, only 0.07 transactions have been profitable.

Currently, 80,000 wallet addresses, which comprise 72% of all its holders, are “out of the money.” According to IntoTheBlock, an address is considered out of the money if the current market price of an asset is lower than the average cost at which the address purchased (or received) the tokens it currently holds.

In contrast, only 23,000 addresses, representing 23% of all FTM holders, hold their coins at a profit.

Coin’s Derivatives Traders See Long Liquidations

The coin’s derivatives traders are not spared from the losses either, with several long positions liquidated over the last 24 hours, according to Coinglass. As of press time, this totals $2.16 million and represents FTM’s single-day highest long liquidations in two months.

Read More: What Is Fantom (FTM)?

FTM Price Prediction: More Pains Lie Ahead

As assessed on a one-day chart, FTM’s key technical indicators hint at the possibility of a further price decline. For example, the coin’s Elder-Ray Index signals that the bearish sentiment trailing it is significant. At press time, the indicator’s value is -0.19.

The Elder-Ray Index measures the relationship between the strength of buyers and sellers in the market. When its value is below zero, it means that bear power is dominant in the market.

Additionally, FTM trades below its 20-day exponential moving average (EMA), signaling a decline in buying activity. The 20-day EMA measures the average price of an asset over the past 20 days. When an asset’s price falls below it, it signals a spike in selling pressure.

If FTM maintains this trend, its value may plunge to $0.25.

However, if it witnesses a trend correction and its demand rises, this may push its price toward $0.48.

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