The A to Z of what Fantom’s investors are expecting from FTM’s price action
Fantom, surprisingly, happened to be one of the weirdest anomalies of the crypto-market last month. While the entire market depreciated in varying degrees, Fantom was busy breaking and making records. And, the biggest enabler of the same was none other than the king coin. That, however, has now become a problem for Fantom.
The surprise quotient here isn’t that it hit a new all-time high. It is the fact that FTM managed to do it in a “bear market.” The same “bear market” which reduced Bitcoin down to $42K on the price charts.
On 16 January, the altcoin closed at $3.31, just 20 cents above its previous ATH recorded in November 2021.
Fantom price action | Source: TradingView – AMBCrypto
Perhaps, the most significant factor that came into play here was FTM’s negative correlation with Bitcoin. On 17 January, for instance, FTM had a negative 0.53 correlation. It went on to fall further towards a yearly low of -0.64 on 21 January.
Over the next few days, alas, this correlation rose rapidly and Fantom began falling. Depreciating by 53.53%, Fantom fell to $1.53.
However, as the correlation once again touched -0.05 and the price began rising, the rising correlation (0.37) became a problem. Right now, its effects are clearly visible on Fantom’s price action.
Fantom’s correlation to Bitcoin | Source: Intotheblock – AMBCrypto
Thanks to political developments around the Russia – Ukraine conflict, global stock markets crashed. And, so did the crypto-market. While Bitcoin and most major altcoins dropped by over 10%, Fantom lost almost 17% of its value.
Fantom’s investors will have to wait as it will be a while before they find the opportunity to become active again. Especially since their on-chain behaviour was significantly higher when
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