Fantom (FTM) has experienced a notable decline of 4.9% this week, with prices sliding to $1.0240. This downturn marks a stark reversal from the impressive 14.0% gains observed on Monday, when the token surged to $1.2242. The recent pullback can be attributed to technical overbought conditions, as FTM emerged as one of the top-performing tokens in March with a remarkable surge of 163.0%, outpacing Bitcoin's 20% increase during the same period.

The surge in FTM's performance was largely fueled by a significant network update, known as Sonic, which aimed to enhance the network's capacity to handle up to 2,000 transactions while concurrently reducing validator stakes to 50,000 FTM, down from the previous requirement of 500,000 FTM.

However, despite the positive implications of the Sonic update, the rapid ascent in FTM's price has led to considerable overbought pressure. As a result, it is probable that this tension will be alleviated through a further decline in token prices, potentially revisiting the support level at $0.8000. Alternatively, FTM may consolidate within the range of $1.0000-1.2000, although this scenario appears less likely given the current market dynamics.