What do Fantom investors expect from the FTM price action?

Fantom became one of the crypto market’s strangest anomalies last month. While the entire market collapsed, FTM was busy breaking and setting ATH.

Fantom once tagged a new ATH

FTM price once hit an all-time high during a “bear market” that saw Bitcoin slip to $42,000 on the price chart.

On Jan. 16, the altcoin closed at $3.31, 20 cents higher than the previous ATH recorded in November 2021.

Source: Trade View

Perhaps the most important factor is FTM’s negative correlation with Bitcoin. For example, on January 17th, FTM has a correlation of -0.53. On Jan. 21, it fell further to a yearly low of -0.64.

Over the next few days, this correlation increased rapidly and Fantom’s price started falling by 53.53% to $1.53.

However, when the correlation touched the -0.05 level again, the FTM price started to increase again. Currently, the correlation between FTM and Bitcoin is growing again at 0.37 and is becoming a big deal for this altcoin. At the moment, its impact on Fantom’s price development is clearly visible.

Fantom’s correlation with Bitcoin | Source: Intotheblock

Global stock markets have plummeted due to political developments surrounding the Russia-Ukraine conflict. And so is the cryptocurrency market. While bitcoin and most major altcoins lost more than 10%, Fantom lost almost 17% of its value.

Fantom investors will have to keep waiting as it will take time before they find an opportunity to work again. Especially since their on-chain activity is significantly higher when prices are high.

In fact, trading volume has dropped from a peak of $440 million to just around $31 million.

Fantom Daily Trading Volume | Source: Intotheblock

Since most FTM investors are medium-term holders, they are likely to use HODL for a better opportunity, unlike Shiba Inu and Dogecoin holders who are pump & dump around bull runs.

Fantom Investor Distribution | Source: Intotheblock

Looking at the price indicators, particularly the Relative Strength Index (RSI) plunge into oversold territory and the increasing downtrend of the MACD, it is clear that the FTM price could fall further.

While Fantom has never stayed in the oversold territory for long, the RSI looks set to drop below 30.0 for the first time. As long as the market holds above the critical support at $1.15, FTM should be able to recover on its own, which is what investors are currently hoping for.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page