- 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
At the time of writing, Fantom [FTM], soon to be rebranded to Sonic, had a bearish outlook on the technical analysis front. Its price action has been intensely bearish over the past month. In fact, it has noted 52.6% losses in just 26 days.
FTM will see a 1:1 token swap on Binance to the new Sonic token S. The strategic plan to introduce Sonic as a new layer-1 blockchain, promising 10,000 transactions a second, could bolster demand for the token in the coming weeks.
Fantom prices keep tumbling lower
Source: FTM/USDT on TradingView
The initial FTM rejection from the $1.44-level occurred on 16 December. Two days later, Bitcoin [BTC] shed 5.6% on the back of bearish news from the U.S FOMC meeting. This accelerated FTM bulls’ woes.
The 61.8% Fibonacci retracement level at $0.659 offered some respite towards the end of December, but the sellers were too strong. Over the last two weeks, they have forced another new lower low, continuing the downward trend for Fantom.
The RSI has been below neutral 50 for nearly a month now, showcasing firm bearish momentum. More worryingly, the OBV slipped below November’s lows. This reflected enormous selling pressure in the market.
Open Interest slides to new lows
Source: Coinglass
It was not only the OBV that made new lows. The Open Interest also hit levels not seen in two years. Together, they underlined high selling pressure on the token. However, the token swap from FTM to S could explain some of these losses.
Read Fantom’s [FTM] Price Prediction 2025-26
Due to the swap, traders might be opting to exit their positions. Exchanges have also announced plans to delist FTM and open Sonic trading pairs. This, combined with the overall bearish market sentiment, could explain the drop in OI and demand.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
