Fantom trading volume falls 20% as Multichain hackers leverage FTM tokens in a new attack on Twitter

Fantom (FTM) trading volume depicts a spooked market, falling in double-digit percentages as Fear, Uncertainty, and Doubt (FUD) span the FTM market. The skepticism comes after the infamous Multichain hackers leveraged the Fantom protocol in their latest venture to dupe the market.

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Fantom trading volume affected by Multichain hackers

Fantom (FTM) trading volume is down 20% over the last 24 hours amid a fear-stricken FTM market. This comes after the Multichain hackers lodged a new attack, this time on Twitter, using FTM tokens as bait. The attack, presented as a phishing link, targeted victims of the recent attack, purporting to be associated with the Fantom Foundation, the non-profit organization (NGO) behind the Fantom (FTM) protocol.

Phishing attacks on Twitter targeting cryptocurrency users are commonplace these days. This type of cybersecurity attack is a move by exploiters to obtain sensitive data such as usernames and passwords. The exploit is presented in the form of mail, text, or direct messages, or in this case, a link easy to believe as the recipient (Multichain victims in this case) thinks it is from a trusted source.

The post, attached to the phishing link, read, “Due to the Multichain hack, Fantom Foundation is issuing an emergency FTM distribution to all users. All users who have interacted with the FTM chain are eligible to claim.” Users that fall victim to this advertisement, which is presented as a fraudulent distribution of FTM tokens, will click the link, giving access to sensitive data to the perpetrators.

Nevertheless, a section of FTM community members and Twitter users have identified the post for what it is, fraud, sending signals and cautionary messages to anyone who would be tempted by it. As the number of tweets, retweets, views, and bookmarks increase by the hour, FUD continues to spread, as indicated on CoinMarketCap’s trading volume section for the FTM token.

Trading volume for the FTM token is down 22.12% as of press time, a bearish signal threatening Fantom price’s attempted recovery from the 20% slump that began on July 4. Trading volume is an indicator that represents the overall market activity. Specifically, it measures how the asset was traded over the specified timeframe.

When daily trading volume drops, it means only a small amount of movement is happening in spot exchanges, interpreted as traders growing inactive in that particular market.

Fantom price forecast amid growing FUD

Fantom (FTM) price is up an abysmal 0.38% in the last 24 hours, but momentum indicators suggest the uptick is unsustainable. The Relative Strength Index (RSI) bolsters the interpretation of the trading volume drop, heading south to show falling momentum.

Unless bulls tighten their grip on FTM, Fantom price could descend to the support floor at $0.239 or, in the dire case, slide lower to collect buy-side liquidity before an attempted correction.

FTM/USDT 1-Day Chart

Conversely, if sidelined investors buy FTM at current discount prices, Fantom price could rally north, potentially breaching the hurdles presented by the 50-, 100-, and 200-day Exponential Moving Averages (EMA) at $0.311, $0.340, and $0.367 respectively, before an extended reach toward the mid-May highs around $0.400.

For the moment, however, the odds favor the downside.