Fantom eyes $0.625 as momentum builds after 22% drop

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    Fantom price rebounds 3.5% after a 22% drop, showing signs of bullish momentum.
    The liquidation data presents a bullish bias with $324K worth of FTM to be leveraged at the $0.625 psychological level.

As a seasoned analyst with over two decades of experience in the crypto market, I’ve seen more than my fair share of rollercoaster rides. But the current situation with Fantom [FTM] is intriguing, to say the least.

As a crypto investor, I’ve noticed an interesting shift in market sentiment towards Fantom [FTM]. Data from Coinglass shows the long/short ratio has dropped to 0.93, suggesting that more traders are opting for short positions in the near future. This trend indicates a relatively cautious outlook on this asset, as investors seem to be hedging their bets for the short term.

Although the current trend suggests bears are in control, Fantom is being traded at a significant support level following a 22% decrease over the past three days. This drop has caused some stress for the asset, yet indications hint at an impending shift in direction.

A potential rebound is brewing for Fantom

Based on data from CoinMarketCap, the price of Fantom has risen by approximately 3.5% within the past 24 hours. This could indicate that the asset is gathering some positive or bullish energy, especially since it’s currently testing its support level at $0.609.

As an analyst, I observe that the current support appears robust, and there’s a growing interest among traders to push past the psychological resistance at $0.625. If the ongoing bullish trend maintains its strength, this resistance level could potentially serve as our next target.

Its strength around these levels will be pivotal for any further price action in the instrument.

Fantom liquidation data hints at bullish sentiment

As an analyst, I delved deeper into the liquidation heatmap data provided by AMBCrypto, seeking further evidence of an impending bullish trend. Notably, this data suggested that approximately $324,000 worth of Fantom could be liquidated at the price level of $0.625. This substantial liquidation zone underscores a significant buying pressure, implying potential price increases in the near future for Fantom.

This crucial ‘liquidation area’ suggests that traders are gearing up for possible liquidations near this important psychological benchmark. This increases the odds of a potential breakthrough or significant price movement.

The bullish bias in the liquidation heatmap adds weight to the case for an upward move.

Read Fantom’s [FTM] Price Prediction 2024-25

As Fantom slowly shows signs of recovery, the market sentiment may now shift to its side.

3.5% price hike combined with optimistic market sell-off information and strong resistance at $0.609 may suggest a potential rise towards the psychologically significant figure of $0.625.

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2024-10-04 18:15