Home Altcoins News Will Fantom’s $961K Liquidation Pool Trigger a Trend Reversal for FTM

Will Fantom’s $961K Liquidation Pool Trigger a Trend Reversal for FTM

Fantom price

Fantom (FTM), a popular altcoin in the crypto space, is currently at a pivotal juncture, with its price consolidating near a key support level of $0.88. This price point is critical due to the presence of a $961K liquidation pool, making it a zone to watch closely. As of now, FTM seems to be holding steady above an ascending triangle pattern, which often signals a potential upward movement. However, whether the price can sustain this support level or face a significant downturn remains uncertain.

The $0.88 Price Level: A Key Test for Investor Confidence

The $0.88 level for Fantom is not just a technical support zone but also a psychological price point for investors. If FTM can maintain its position above this level, it could signal renewed bullish momentum, drives a potential rally. A close above $0.88 would likely encourage more buying activity, as traders see this as a confirmation of upward potential.

On the other hand, if the price fails to hold above this level, the situation could quickly turn bearish. The $961K liquidation pool tied to the $0.88 price level means that any downward movement could trigger liquidation orders, increasing selling pressure and destabilizing the price further. Such a scenario could potentially send FTM lower, erasing recent gains and possibly leading to further losses.

The Impact of Exchange Outflows

In the past 24 hours, Fantom has experienced a sharp decline in exchange outflows. This metric, which tracks the movement of tokens from exchanges to private wallets, is often a good indicator of market sentiment. Typically, an increase in outflows signals confidence among investors, as they move their assets off exchanges in anticipation of future price increases. However, the recent decrease in outflows suggests that traders are hesitating, possibly waiting for clearer signals before making any significant moves.

This reduction in outflows aligns with the ongoing consolidation of FTM’s price, reflecting a market that is uncertain about the next move. Investors may be holding off, awaiting confirmation of either a bullish breakout or further decline before committing their funds.

Ascending Triangle and Liquidation Risks

The combination of the ascending triangle pattern and the liquidation pool at $0.88 creates a unique situation for Fantom. An ascending triangle is typically considered a bullish continuation pattern, suggesting that FTM could see an upward move if it successfully holds above this support. If FTM maintains this position, the bullish trend could be reinforced, and the market could see a recovery in exchange outflows, further fueling the price surge.

However, if the price breaks below the $0.88 support, the resulting liquidation orders could trigger a sharp decline. This would put significant pressure on the price, potentially invalidating the ascending triangle pattern and reversing the bullish outlook.

Broader Market Sentiment and External Factors

While technical factors play a significant role in Fantom’s price movement, broader market sentiment and external factors will also influence its trajectory. The cryptocurrency market is notoriously volatile, and any major news or changes in market conditions could quickly shift investor sentiment. For example, regulatory news or a shift in Bitcoin’s price could have a cascading effect on altcoins like Fantom.

Additionally, the performance of major decentralized finance (DeFi) projects or any updates to the Fantom blockchain could also play a role in determining whether FTM can hold its ground above the critical $0.88 level.

The Path Forward for Fantom

Fantom’s price action around the $0.88 level is crucial for both short-term traders and long-term investors. A successful hold above this level could set the stage for a bullish breakout, boosting investor confidence and potentially reversing the downtrend in exchange outflows. Conversely, a failure to hold the $0.88 support could lead to further declines, destabilizing the price and possibly causing a shift in market sentiment.

Ultimately, the coming days will be decisive for FTM’s future direction. Whether the bears or bulls prevail at this critical juncture will determine the next phase for Fantom. Traders and investors alike are closely watching this key price level, knowing that it could mark either the beginning of a recovery or the continuation of a downward trend.

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Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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