FTM drops 6% in 7 days: Will Fantom’s achievements save it?
Journalist
Posted:
- Fantom’s closed testnet crossed 4 million accounts.
- Regardless, metrics and market indicators remained bearish on FTM.
Fantom’s [FTM] closed testnet has come a long way since its launch, as its total number of accounts crossed the 4 million mark recently. Its total transactions surpassed 375 million during the same time period.
However, despite Fantom’s feats, its price action turned in the bears’ favor.
Fantom Closed testnet is performing well
The Fantom Foundation posted a tweet highlighting the network’s achievements on the 27th of November. The tweet mentioned:
“Fanton Sonic Closed Testnet is back with ~4,000 TPS at ~1.3 second finality… The testnet has processed transactions resembling realistic traffic (token transfers, mints, and swaps), which has allowed us to showcase the performance of Sonic in conditions that represent actual usage.”
The #FantomSonic closed testnet is back with ~4,000 TPS at ~1.3 second finality ✅
So far, the testnet has processed transactions resembling realistic traffic (token transfers, mints, & swaps) which has allowed us to showcase the performance of Sonic in conditions that represent… pic.twitter.com/XJYNevkTgY
— Fantom Foundation (@FantomFDN) November 27, 2023
Over the next few months, the closed testnet will undergo several changes, which could further boost the Fantom network’s popularity.
FTM is going the other way around
While the blockchain’s EVM-compatible testnet continued to grow, its native token’s price action went in the sellers’ favor. According to CoinMarketCap, FTM was down by more than 6% in the last seven days.
At the time of writing, it was trading at $0.29 with a market capitalization of over $813 million.
A possible reason behind this could be the drop in selling pressure. When AMBCrypto analyzed Santiment’s data, we found that FTM’s Exchange Outflow dropped last week. Its MVRV ratio also plummeted, causing its price to sink.
Fantom’s Network Growth declined last week, meaning that fewer new addresses were created to transfer the token. However, its Development Activity remained high, suggesting that the developers were making increased efforts to improve the blockchain.
Source: Santiment
Read Fantom’s [FTM] Price Prediction 2023-24
Upon further inspection, AMBCrypto found that FTM’s Relative Strength Index (RSI) registered a downtick, implying that the token’s price might go down further over the coming days. The MACD also displayed a clear bearish advantage in the market.
On the good side, FTM’s Bollinger Bands revealed that the token’s price was entering a less volatile zone. This could prevent the token’s price from plummeting further. Another bullish signal was Fantom’s Chaikin Money Flow (CMF), which moved northwards at press time.
Source: TradingView
