Fantom (FTM) declines 6.9% amid a decline in the market support

Fantom (FTM/USD) has made notable gains over the past few months following the increased demand for its network by decentralized finance (DeFi) developers. While the blockchain’s total value locked (TVL) has increased, the FTM token has not been spared from the ongoing recession across the crypto market.

At the time of writing, FTM was trading at $1.93, according to CoinGecko, having registered a slight dip after the market went to a downtrend during the past 24 hours.

Fantom drops below $2

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Fantom has failed to hold the uptrend due to the ongoing recession across the cryptocurrency market. The token is trading in the red zone, similar to most other cryptocurrencies in the market.

FTM has dropped below the critical level of $2. If it continues with this price movement, it could push towards the lower support level at $1.88. The lack of buying pressure at this point could trigger a steeper downtrend towards $1.62. If bulls fail to hold above $1.60, it could sink to $1.50 or even $1.25.

The market support is low; hence the chance for a downtrend continuing are high, and traders that want to book profits will have a chance to accumulate more tokens. Traders that accumulate tokens at these prices could trigger a recovery that will push FTM beyond $1.98 and set the next target at $2. The next major price target for the coin will be $2.10.

If market supports holds past $2.10, bulls could take the prices towards $2.45. However, going by the recent market trend, such bulls will be achieved if the market support continues.

Fantom’s TVL shoots

The Fantom network has been winning in the decentralized finance (DeFi) sector. The network has continued to receive attention from DeFi developers looking for a scalable network to build their DeFi projects.

Fantom is currently the second-largest blockchain network in terms of TVL. The network’s TVL currently stands at $8.69 billion, making it second from Ethereum in TVL. Fantom has managed to overtake some popular networks such as Terra, Avalanche and Solana.