Fantom: Bullish projections come to a naught because of this

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FTM, the native coin of the Fan­tom Foun­da­tion, saw a hike in its social met­rics last week. Accord­ing to data from Lunar­crush, the alt grew its Galaxy Score to a high of 74 out of 100, which was an indi­ca­tion of a per­ceived bull­ish­ness in the coin’s social and mar­ket activity. 

Failed to live up to expectations

In spite of the bull­ish pro­jec­tions for FTM’s price, its price declined by 20% in the last week. Accord­ing to Coin­Mar­ket­Cap, FTM trad­ed for $0.2237 at press time. A week ago, this cost $0.25. 

Not left out of the price/trading vol­ume diver­gence that has plagued the gen­er­al cryp­tocur­ren­cy mar­ket in the last 24 hours, FTM has also failed to see any sup­port from its buy­ers with­in the same peri­od. Its price was down 11% in the last 24 hours, while its trad­ing vol­ume was up by 114%. 

Unsur­pris­ing­ly, FTM logged a dai­ly decline in unique active address­es that trad­ed the asset in the last week. Accord­ing to data from San­ti­ment, dai­ly active address­es that trad­ed FTM with­in the 7‑day peri­od fell by 59%. 

With­in that peri­od, the aggre­gate num­ber of FTM coins across all trans­ac­tions that were com­plet­ed dai­ly also dropped by over 1000%. This val­ue in USD rep­re­sent­ed a drop from $16.54 mil­lion to $768,000. 

Source: San­ti­ment

Inter­est­ing­ly, despite the sig­nif­i­cant drop in the price of FTM in the last week, fur­ther data from San­ti­ment hint­ed at a decline in sell-offs. 

The asset’s Exchange Flow Bal­ance on a 7‑day mov­ing aver­age post­ed a neg­a­tive ‑25k at press time. When the Exchange Flow Bal­ance of a cryp­to asset posts a neg­a­tive val­ue, it shows that there is less sell-off risk with coins mov­ing to offline wallets. 

A look at FTM’s sup­ply on exchange in the last sev­en days sup­port­ed this posi­tion. It declined by 4% in the last week show­ing growth in buy­ing pres­sure for the asset. 

Source: San­ti­ment

The decline in the price of FTM in the last week, despite on-chain indi­ca­tions that there were few­er sell-off, mir­rors the decline in the entire cryp­to mar­ket with­in the same period. 

Also, it shares a sta­tis­ti­cal­ly sig­nif­i­cant neg­a­tive cor­re­la­tion with Bit­coin [BTC], which itself logged a 17% decline in the last week and trad­ed at a 3‑months low.

On a broad­er hori­zon, not much price growth is in store for FTM. The asset has remained dor­mant in address­es in the last three months. For any sig­nif­i­cant asset price growth, these dor­mant FTM coins need to change hands. 

Source: San­ti­ment



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