Fantom’s sell-off escalates with 52% losses – Are more incoming?

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  • Fantom seemed to have a strongly bearish structure on the daily chart
  • OBV slipped below November lows while the next downward price target was at $0.5

Currently, as I’m typing this, Fantom (FTM), which will soon be known as Sonic, appears to have a gloomy technical analysis perspective. Over the last month, its price trend has been extremely bearish, leading to a significant decrease of approximately 52.6% within just 26 days.

In the near future on Binance, FTM tokens will be swapped 1 for 1 with the brand new Sonic token (S). The plan to launch Sonic as a high-capacity layer-1 blockchain, capable of handling up to 10,000 transactions per second, may lead to increased interest in the token over the next few weeks.

Fantom prices keep tumbling lower

On December 16th, the first refusal of FTM occurred at the $1.44 level. Two days after that, Bitcoin [BTC] dropped by 5.6% due to bearish news from a U.S Federal Open Market Committee (FOMC) meeting, which further intensified the struggles for FTM bulls.

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As a researcher analyzing the price movements of Fantom, I observed that the 61.8% Fibonacci retracement level at $0.659 provided some momentary relief towards the end of December. However, the selling pressure proved overwhelming, pushing the price downwards once again over the last two weeks. This has resulted in a new lower low, further reinforcing the ongoing downward trend for Fantom.

For almost a month now, the Relative Strength Index (RSI) has remained below the neutral 50 level, indicating strong downward pressure, or bearish momentum. Additionally, the On-Balance Volume (OBV) dipped beneath the lows from November, suggesting significant selling activity in the market.

Open Interest slides to new lows

Apart from the OBV reaching fresh lows, the Open Interest also dropped to levels last seen about two years ago. This dual occurrence suggests significant selling pressure on the token. Yet, the token swap from FTM to S might account for some of this downward trend.

Read Fantom’s [FTM] Price Prediction 2025-26

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Because of the exchange, some traders may choose to close their holdings. Moreover, exchanges are planning to remove FTM and introduce Sonic trading pairs instead. Considering these factors, along with the general negative market outlook, might be the reason for the decrease in open interest and demand.

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2025-01-11 18:15