What Fantom (FTM) Price Drop Means for 50% of Investors

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In Brief

  • Fantom price is noting a red candlestick at the time of writing after reaching a 23-month high.
  • The network realized profits are at a high, suggesting that profit taking will occur soon.
  • About 50% of all FTM holders are sitting in losses, which will persist going forward.

Fantom (FTM) price hit the ceiling today as the cryptocurrency has declined by more than 6% in the last 24 hours.

This drawdown is set to leave FTM holders even more distraught since the likely outcome will mean losses for more investors.

Fantom Price Poised for a Correction

Fantom price had a good run this past week, rising by more than 40%, breaching the $1.00 mark and closing at $1.11 on Wednesday. However, by the looks of it, this will be the highest point of the rally as the cryptocurrency has already begun to decline.

At the moment, the altcoin is changing hands at $1.04, testing the local support level of $1.03. This decline will continue down the line as the bullish sentiment is waning.

The recent rise gave rise to profits as well, which can be observed by looking at the network’s realized profits and losses. This indicator measures the last moved price of the asset to the current price to provide an estimate of the market condition.

Spikes on the metric show that over the past week, profits have been running high. This suggests that over the coming days, profit-taking will probably take precedence as investors jump to secure their gains.

What Fantom (FTM) Price Drop Means for 50% of Investors
Fantom Network Realized Profits. Source: Santiment

Additionally, the conviction to act bullish among investors is rather low right now. The reason behind this is that despite the huge recent profits, the larger picture is still bearish. Nearly 50% of all FTM holders are still sitting in losses, and in order to prevent joining this lot, the investors in profit would sell their holdings.

What Fantom (FTM) Price Drop Means for 50% of Investors
Fantom Investors at Loss. Source: IntoTheBlock

All in all, the impact on Fantom’s price will knock it further down.

FTM Price Prediction: Correction Could Tap This Key Support

Fantom price trading at $1.04 is getting closer to the crucial support of $0.93. The reason that this is important is because it is also the point at which the 50-day Exponential Moving Average (EMA) stands.

What Fantom (FTM) Price Drop Means for 50% of Investors
FTM/USDT 1-day chart. Source: TradingView

Falling through this level would ascertain short-term losses, which could result in FTM observing a low of $0.84. This would invalidate the bullish thesis, potentially sending the altcoin to $0.80.

This article is sourced from the internet: What Fantom (FTM) Price Drop Means for 50% of Investors

Related: Fantom (FTM) Price Analysis: Predicting Consolidation or Bullish Breakout?

In Brief Fantom (FTM) number of profitable holders just reached 55%. A 858% price growth followed the last time this happened in less than a month. FTM supply in the hands of traders has increased heavily in the last few days, indicating the volatility ahead. FTM EMA lines draw a neutral signal, as short-term lines are above long-term lines, but below the price line. Fantom (FTM) has seen a notable surge in the percentage of profitable holders, reaching 55%. A similar milestone was historically accompanied by a dramatic 858% increase in FTM price in less than four months. This suggests a potential upcoming price movement. Recently, there has been a significant rise in the FTM supply held by traders, hinting at the possibility of future volatility. Moreover, the current positioning…

 

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