Fantom (FTM) Price Prediction: Losses May Be Bigger as the Token Struggles to Recover

Like many other altcoins, Fantom's (FTM) price struggles to recover from its quarter-long decline. On-chain data highlights specific factors

Altcoin prices have been battered by a quarter of unrelenting declines, with Fantom (FTM) being no exception. But on-chain data highlights specific factors that are keeping the token from reaching a higher value.

The highest price that FTM reached this quarter was $1.03 on April 10. There were several attempts to trade higher, but the token was met with rejection on multiple occasions.

Some speculated that FTM has now entered an opportunity zone for market participants to accumulate. But according to the Network Value to Transactions (NVT) Ratio, bearish forces are still gripping the token’s direction.

According to data from Santiment, the NVT Ratio on the Fantom network suddenly jumped to 2,997 on June 17. This marks an all-time high for the metric.

A higher NVT Ratio, in relation to the price, has historically been linked to a local top. As such, being valued at $0.61 at press time, this may indicate that FTM’s price could drop further.

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Last week, BeInCrypto reported that demand for FTM dropped to a yearly low. The analysis suggested that the price would drop below $0.60.

This prediction now appears set to come to fruition. The Exchange-Onchain Market Depth is bolstering this prognosis.

According to data from IntoTheBlock, there were 50.63 million FTM tokens on the bid side. However, the ask side had 81.35 million tokens lined up to be sold.

FTM Price Prediction: Losses May Be Bigger

This disparity in orders suggests that the token is likely to experience high selling pressure. If this continues over the next few days, then FTM’s price may indeed drop below $0.60 and begin trading at around $0.58.

Another key metric for Fantom is development activity. Being a smart contract platform, development activity measures whether developers are shipping new features to cater to the network.

According to on-chain data from Santiment, development activity for Fantom has been dropping since June 14. This indicates that there has been a low level of activity from developers in pushing out new updates to the network. Additionally, the 24-hour active addresses also fell, suggesting a decrease in the number of unique addresses interacting with FTM.

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If these metrics continue to slide, then the bulls may not be able to save FTM from another downturn. However, the Sonic upgrade, which is set to take place in Q3, may save the token from making any further losses.

Although, Fantom is yet to announce a date for the Mainnet event. If they do, then buying pressure may increase and FTM could return to $1.

News source：https://www.kdj.com/cryptocurrencies-news/articles/fantom-ftm-price-prediction-losses-bigger-token-struggles-recover.html

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