Will Fantom’s $961K liquidation pool trigger a trend reversal for FTM’s price?

  • Fantom’s $961k liquidation pool pointed to a pivotal test at the $0.88 price level
  • Altcoin exchange outflows have dropped sharply, raising concerns about market confidence

As a seasoned crypto investor with a few battle scars and a handful of lessons learned from past market cycles, I find myself standing at a crossroads with Fantom (FTM). The $0.88 price level is a decisive battleground that could tip the scales in favor of either the bulls or the bears.

Currently, Fantom’s (FTM) price is at a pivotal stage as it is consolidating within a significant demand area on the charts. The $961K liquidation pool associated with the $0.88 price level is an area that requires close attention due to its potential significance. At this moment, Fantom appears to be trading above the support of an ascending triangle – A pattern commonly related to possible upward trends.

Ignoring the importance of this $0.88 price point isn’t advisable. If we manage to break above it, buyer confidence may surge and potentially spark an upward trend.

Instead, if there’s a break-in (penetration), it will set off liquidation orders. This could increase selling pressure, potentially leading to more instability and further drops in the price.

Exchange outflows reflect shifting sentiment

Over the past day, there’s been a significant decrease in Fantom’s exchange withdrawals. This indicator, which monitors the transfer of tokens from exchanges to personal wallets, generally indicates the level of investor confidence.

Such a decrease implies that fewer traders are transferring their assets out of the exchanges, suggesting caution or uncertainty about the token’s short-term future potential.

The decrease in outgoings aligned with the general consolidation, suggesting that the market is uncertain and hesitant. It appears investors might be holding off on their next action until they receive more definite cues.

$0.88 emerges as a decisive price level for Fantom

The combination of the rising triangle’s potential support point and the $0.88 sell-off zone makes for a captivating dynamic, as this level could prove crucial in determining Fantom’s upcoming direction.

Reaching a stable point at this height might convincingly confirm the triangular formation of Fantom, potentially leading to an optimistic price surge. Such an increase could rebuild investor trust and possibly halt or even reverse the current trend of withdrawals from exchanges.

If the $0.88 level doesn’t hold up against the bearish pressure, a surge in selling could force the price even lower. This might cause a disruption in the altcoin’s overall technical setup.

In other words, the overall mood of the larger cryptocurrency market and various external influences could significantly impact if Fantom is able to maintain its current standing or not.

As FTM’s price stabilizes around a critical point, it presents significant opportunities for both immediate trades and future investments.

In simpler terms, the $0.88 mark could serve as a significant point of conflict for supporters (bulls) and opponents (bears) of FTM. Whether this level is broken or not will determine if we see more upward movements (bullish trend) or if the graph continues to drop (further declines).

Read More

2024-12-27 10:15