- Fantom’s $961,000 liquidation pool highlighted a crucial test at the $0.88 price level.
- Altcoin exchange outflows fell sharply, raising concerns over market confidence
Fantom (FTM) price currently finds itself at a crucial point, with the altcoin consolidating in a demand zone on the charts. In fact, the $961,000 liquidation pool tied to the $0.88 price level makes this area one to watch closely. At the time of writing, the altcoin appeared to be trading above the support of an ascending triangle – a trend often linked to a potential upward move.
The importance of this price level cannot be ignored. A close above $0.88 could boost buyer confidence and likely trigger a rally.
Conversely, any penetration will trigger liquidation orders, increasing selling pressure which could further destabilize the price.
Source: Coinglass
Currency Outflows Reflect Shift in Sentiment
In theast 24 hours, Fantom saw a strong decline in foreign exchange outflows. This metric, which follows the movement of tokens from exchanges to private wallets, generally reflects THE trust level of investors.
A decline like this suggests that fewer traders are withdrawing their holdings from exchanges, indicating hesitation on the token‘s short-term outlook.
This reduction of outings corresponded has the predominant consolidation and revealed that the market was undecided. Iinvestors can In fact to wait for clearer signals before making their next move.
Source: In the block
$0.88 appears to be a decisive price level for Fantom
The ascending triangle support and the liquidation pool at $0.88 create an interesting interaction, establishing this critical price level for Fantom’s next move.
A successful hold above this level would likely validate Fantom’s triangle pattern and set the stage for a bullish breakout. This could restore investor confidence and reverse the downward trend in foreign exchange outflows.
However, if the $0.88 support fails to withstand the bearish pressure, the ensuing liquidation pressure could push the price further down, which could consequently disrupt the technical structure of the altcoin.
In this case, general market sentiment and external factors will likely play a role in determining whether or not Fantom can maintain its position.
Source: TradingView
As FTM price consolidates near its key level, the stakes are high in both short-term trading and long-term investing.
The $0.88 level is shaping up to be a key battle line between bears and FTM bulls. The direction of the breakout will either lead to renewed bullish momentum or further declines on the charts.
