- Investors should be wary of the sudden surge in FTM prices
- Whales actions can often have an effect on prices.
Investors should be wary of the sudden surge in FTM prices, as large Fantom whale addresses have been identified to be selling off their holdings. This is a cause for concern, as whales are often influential players in the cryptocurrency market and their actions can often have an effect on prices.
Fantom, the Layer-1 blockchain network which gained immense popularity as a viable alternative to Ethereum. However it has once again been making headlines in recent months. After suffering an especially harsh crash during last year’s crypto market meltdown, FTM has managed to make a remarkable comeback since the start of 2023.
In January alone, FTM demonstrated a surge of more than 200%.However is was thriving in the bullish market and continuing its upward trend. At the time of writing, FTM is trading at around $0.52 – 15% up. The price is from its starting price – with another notable breakout taking place on 14th Feb.
Crypto Analytics Firm Sentiment’s Report
According to on-chain data, Fantom’s big whale and shark addresses have been engaging in significant dumping of their tokens. This was during the 2023 market recovery. The crypto analytics firm Santiment recently released a report which highlighted these patterns:
They discovered that addresses holding 10K to 100M $FTM had dropped.This was an astonishing $259.7M worth of coins in the past 4 weeks. Additionally, these tokens had largely been acquired by smaller addresses, containing 0.01 to 1 $FTM each.
Analysts noted that these whale addresses have been selling off their tokens at a rapid rate. However this would suggest that they are taking profits from the recent price rally.
This type of behavior can lead to a bearish sentiment in the market. Thus causing a pullback in prices if enough investors follow suit and sell off their holdings. It is important for traders to remain vigilant and aware of any potential risks associated with this activity.
