The last few weeks have been just a roller coaster ride for Fantom (FTM). Since October every upward trend ends more or less in a downward trend and vice versa.

However, the context is a little different this time. December is pretty brutal for most coins. In fact, FTM is no exception. At the time of writing, the altcoin is trading for less than half of its all-time high of $ 3.41.

Difficulty accumulating difficulties

Fundamentally, it looks quite unfavorable for Fantom. The Protocol’s Total Value Locked (TVL) crashed four times in October, TVL hit a new high in November, slightly above previous levels, but fell again in December.

As of the beginning of this month, the protocol has lost over $ 800 million from the ecosystem. A sharp drop in liquidity is never a healthy sign.

The source: DeFiLama

In addition, the development of Fantom has stalled so far. The number of commits, stars, and open issues on Github has flattened out as developer excitement has waned over the past few days.

The source: IntoTheBlock

Given the signs of deterioration in fundamentals, the outlook for FTM is mixed at the moment. In fact, the state of some on-chain indicators also supports the above narrative.

The FTM market is currently lacking pressure to buy. The token’s cumulative trading volume cannot keep up either. This signals a lack of motivation.

The source: mood

ITB data also show that the addresses of the network are now also less active than in previous months – a sign that market participants are moving away from FTM. This is also confirmed by the token’s age table.

The indicator has skyrocketed a few times since the beginning of this month. Put simply, the age of consumption measures how many tokens have changed the address on a time basis since the last move.

Such spikes often signal a large amount of token movement after being inactive for a long period of time. In other words, players are leaving the market and this is never a healthy sign.

The source: mood

So with the trends above, it’s clear that bears are dominating the FTM market. If this situation continues in the next few days, it is very unlikely that the token will hold its current position and move upwards by inches.

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