The Fantom Price fell below a key support level as investors are concerned about its ecosystem. It’s trading at $1.08, its lowest since September 2021 and 67% lower than its highest this year.
Fantom has lost momentum.
Fantom is a huge layer one network, a major competitor to Ethereum and Solana. It has been used to create some of the biggest DeFi, and non-fungible token (NFT) projects currently.
As per DeFi Llama, over 200 apps have been created in Fantom with a total value locked (TVL) of over $6.25 billion. Thus it’s the sixth-largest platform globally after Ethereum, Terra, BNB Chain, Avalanche, and Solana.
The Fantom price fell by over 67% from its highest this year, thus worrying investors. Last week, it declared the exit of two of its biggest developers, Andre Cronje and Anton Nell, thus terminating about 25 projects.
Therefore, these concerns significantly drove the TVL from over $11 billion in February to $6.25 currently.
Fantom foundation downplayed the effect of this exit in its announcement. It reported that the said developers had moved the 25 projects to existing teams creating them and had not halted them.
Generally, the ecosystem has experienced significant loss in TVL. For example, SpookySwap’s TVL fell by 45% within 30days while Geist Finance and Scream lost 31% and 41%, respectively.
Fantom price prediction
The daily chart indicates a serious downside for the FTM price the past few days. It fell by about 68% from its highest ever. A closer look affirms a fall below the key support level at 1.1560, the lowest level on December 4th.
The Fantom price has moved below the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) has moved below the oversold level.
The Fantom Price has moved below the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) moved below the oversold level.
Thus, the bearish trend may continue pushing to a $0.90 next key support level in the near term.