FTM (the token for the Fantom network) is under severe pressure, the chances are high that 5 weeks’ bullish run might come to an end.
Over the past five weeks, the price of FTM token increased by 230% because of the overbought market trend.
This week was classic and one of the most memorable weeks of 2023 so far for the cryptocurrency market.
But, the technical data has recently shown that despite the boom in the cryptocurrency market, FTM is losing its momentum.
Due to a growing disparity between its price and movement over the past few weeks, the price of Fantom (FTM $0.56) can fall.
Why FTM Price Increased At The First Place?
The price of FTM rapidly increased for the first week, on Feb 5, 2023, the token was trading at $0.61. The price rally came after Cronje revealed the 2023 road map of the token.
Moreover, the broader cryptocurrency market recovery also played its part in sending the price of FTM to the high.
Cronje the mastermind behind the development of Fantom’s layer-1 blockchain, back in December 2022 wrote a letter to the FTM’s community in which he shared the project’s plans.
Many crypto news websites suggest that the global trade volume of the overall cryptocurrency market has risen significantly. Moreover, Bitcoin crossed the $2350 resistance level.
Following the Bitcoin price gain, ETH did not remain shy for too long and finally managed to touch $1560.
As Fed in their latest monetary meeting did not increase the interest rates this has given much-needed momentum to cryptocurrencies.
Apart from, Bitcoin and Ether all the other big altcoins also surged. Most recently the news has emerged the Terra Luna Classic prices have increased by 24%.
This massive price jump came on Thursday and Friday evening after news emerged that USTC will be pegged again. It has been the much-awaited news that the crypto community as waiting for almost over a year.
He said that the developers of Fantom will get 15% of the network's revenue for the financial year 2023. Since then, the price of the FTM token continuously increased for five consecutive weeks.
Talk of the first week of February, The FTM/USD pair closed the first week of this month with a 25% profit.
But experts are predicting that the FTM future price is going to slow down and might start to decline due to the growing bearish difference between its decreasing momentum and rising price.
Some Other Reasons That Why the Price of FTM Token Might Decline
On Friday, the United State Department of Labor posted a report highlighting the strong employment performance of the US government.
Just during the first month of 2023, the economy has created almost 160,000 jobs.
This has once more given the Feds an opportunity to increase interest rates, experts are also talking that the U.S. economy can handle further hikes in interest rates.
As the result, the investors' sentiment and decline in the overall cryptocurrency market cap can force all the cryptocurrencies’ prices to go down. FTM is no exception.
Moreover, 2023 has been the year of rapid development and crypto adoption. So, if FTM did not match the pace of its competitors it will also force the price of the FTM token to decline.
As of this writing, the chances are very promising that the FTM price could crash toward $0.42. This accounts for a 35% decrease from its current market price.
But as long as the digital token maintains its price higher than its 200-day EMA, its price will remain bullish.
But if Feds decided to increase their policy rate then FTM will not be able to maintain its price higher than 200-day EMA.
It's important to keep in mind that the cryptocurrency market is highly volatile, and prices can fluctuate rapidly in response to news and events.
So, if you are willing to invest in FTM or any other cryptocurrency, you need to research a bit deeper and also consult with some experienced professionals.