Fantom (FTM) is battling to recover from significant losses. The token gained 3% in the last 24 hours but remains down 20% for the week. Broader market uncertainties and reduced whale activity continue to weigh on its performance.
Hovering near key support levels, FTM’s future depends on whether buyers can regain momentum and trigger a sustained rally.
Downtrend Shows Signs of Weakening
The Average Directional Index (ADX) for Fantom has dropped from 36.9 to 31.4, indicating a weakening downtrend. The ADX measures trend strength on a scale of 0 to 100, with values above 25 signaling a strong trend.
While the downtrend’s intensity is fading, Fantom has yet to establish a clear direction. This could lead to reduced volatility, offering the market a chance to stabilize. If this trend holds, FTM may enter a recovery phase or trade within a range. However, without renewed buying interest, the token risks prolonged consolidation or further declines.
Whale Activity Declines Sharply
A significant drop in large FTM wallet holdings signals waning confidence among major investors. Wallets holding 1 million to 10 million FTM have fallen from 84 to 69 since January 3. This marks the lowest number of whale wallets since November 2024.
Whales often influence market sentiment and liquidity. Accumulation typically reduces supply and drives prices higher, while a decline can indicate profit-taking or liquidation, leading to downward pressure. Unless whale activity stabilizes or reverses, FTM’s recovery efforts may face additional hurdles.
FTM Price Prediction: Can It Reclaim $1?
If the downtrend continues, FTM may test critical support at $0.618. A break below this level could push the price below $0.60 or even to $0.50.
On the upside, a reversal could help FTM challenge resistance at $0.879. Breaking above this level may reignite bullish momentum, potentially pushing the price above $1 for the first time since December. Sustained rallies could even see FTM target $1.05, signaling renewed investor confidence and a potential uptrend.
