Fantom’s money-making opportunity amid 127M FTM selling

ambcrypto.com:

After the crash of 9 May, many cryptocurrencies have managed to make stark recoveries, while others such as Fantom are still struggling to do so. However, it’s important to note that the recent actions from the asset’s very own investors are causing a delay in Fantom’s climb back to normalcy.

FTM crashed very quickly, but it started recovering soon. After climbing by 43.11%, FTM slipped again. And, at the time of writing, it was trading at $0.38, down by about 6.87% over the last day. This was caused by the wave of panic selling that ensued right after the crash and wiped out more than $50 million.

Fantom price action | Source: TradingView – AMBCrypto

Investors, beginning 9 May, consistently kept selling their holdings and as a result, 127 million FTM entered the exchanges at the time of writing.

Fantom supply on exchanges | Source: Santiment – AMBCrypto

On analyzing, it seems, that investors are right in their decision to sell. Traders and investors who mostly invested in FTM for profits look highly motivated to sell given the state of the market.

Since October 2021, FTM holders have been conducting higher transactions in losses than they have in profit which exceeded expectations, and right after the crash, the same transactions in losses peaked at $48 million at one point.

Fantom transactions in losses | Source: Santiment – AMBCrypto

Plus, with the market value of the asset declining rapidly and falling to its lowest ever, their actions seem justified. 

However, it does discourage new investors who in hindsight should take it as a precaution, since, on a larger scale, they are being saved from rampant losses. 

Notably, since the beginning of March, the network-wide supply of Fantom has been predominantly sitting in losses