- Fantom’s network activity remained high while the number of unique addresses increased.
- Market indicators pointed to the possibility of a trend reversal.
Phantom [FTM] investors have had a tough time in recent days as the token’s price fell. This happened at a time when the blockchain registered promising growth in terms of network activity.
However, will high network activity be enough for FTM to turn its card green?
Fantom’s cards are red!
Last week was somewhat unfortunate for Fantom as it lost its value by double digits. According to CoinMarketCapThe FTM has fallen by more than 23% in the past seven days.
In the last 24 hours alone, the token’s value fell by 8.5%. At the time of writing, Fantom was trading at $0.3694 with a market cap of over $1 billion.
As FTM’s price fell substantially, AMBCrypto monitored investor behavior. Our analysis of Santiment’s data showed that FTM supply on exchanges has increased over the past week, while off-exchange supply has fallen.
This indicated that FTM was under selling pressure at the time of writing.
Source: Santiment
Whales’ confidence in FTM also appears to have waned, as both the supply of prime addresses and the number of whale transactions fell last week.
It was interesting to note that, as per Whale statisticsFantom ranks 27th on the list of cryptos that sold the top 100 ETH whales in the last 24 hours.
Fantom adoption has increased in 2023
While the token was bleeding, Fantom Insider posted a tweet revealing one of Fantom’s 2023 achievements. The tweet stated that FTM was only lagging behind Polygon [MATIC] And BNB chain [BNB] in terms of unique addresses of EVM blockchains in 2023.
To be precise, FTM will have had more than 128 million new unique addresses by 2023.
Despite poor market conditions in 2023, @FantomFDN has grown and shines like a phoenix from the ashes ????
???? #Phantom has had over 128 million new unique addresses in 2023 and ranks 3rd compared to other top EVM blockchains ????
???? With the mainnet launch of… pic.twitter.com/oA27loqrtf
— Fantom Insider (@fantom_insider) January 7, 2024
Now that the blockchain plans to launch its Fantom Sonic mainnet in 2924, things could get even better. From now on, AMBCrypto’s analysis of Artemis’ facts revealed that FTM’s daily active addresses peaked on January 6, 2024.
After a decline, the blockchain’s daily transactions also gained upward momentum, which seemed promising. However, Fantom’s TVL continued to decline over the past week.
Source: Artemis
FTM’s high network activity could soon indirectly positively impact the token’s price action. Our look at CryptoQuant’s facts revealed that FTMThe Relative Strength Index (RSI) was in the oversold zone.
Read Fantoms [FTM] Price prediction 2024-25
This could increase buying pressure, causing the price of FTM to rise.
The token’s Money Flow Index (MFI) was also on the verge of entering the oversold zone. Moreover, the Chaikin Money Flow (CMF) registered an upswing, increasing the likelihood of a northward price move in the following days.
Source: TradingView