- Phantom seemed to be showing a strong decline on the daily chart
- OBV has fallen below its November low and the next downside price target is $0.5.
At the time of this writing, Fantom (FTM), soon to be rebranded as Sonic, had a bearish outlook in terms of technical analysis. Price action has been very bearish over the past month. In fact, it recorded a 52.6% loss in just 26 days.
FTM will see a 1:1 token swap for the new Sonic Token S on Binance. The strategic plan to introduce Sonic as a new layer 1 blockchain, promising 10,000 transactions per second, could strengthen demand for the token in the coming weeks.
Phantom prices continue to fall
Source: FTM/USDT on TradingView
The first FTM rejection at the $1.44 level occurred on December 16th. Two days later, Bitcoin (BTC) fell 5.6% on weak news from the US FOMC meeting. This accelerated the distress of FTM bulls.
The 61.8% Fibonacci retracement level at $0.659 provided some respite in late December, but the sellers were too strong. Over the past two weeks, they have continued Phantom’s downward trend and hit another low.
RSI has been below the neutral 50 level for almost a month now, showing solid bearish momentum. What’s more worrying is that OBV has fallen below its November low. This reflects the enormous selling pressure in the market.
Open interest falls to a new low
Source: Coinglass
OBV wasn’t the only one hitting new lows. Open interest also reached levels not seen in two years. Together they highlighted the high selling pressure on the token. However, the FTM to S token swap may explain some of these losses.
Read Fantom (FTM) Price Prediction for 2025-26
Swaps may also cause traders to close positions. The exchange also announced plans to delist FTM and open Sonic trading pairs. This, combined with overall bearish market sentiment, could explain the decline in OI and demand.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.