• Fantom's $961,000 liquidation pool points to a critical test at the $0.88 price level.

  • The significant decrease in altcoin outflows from exchanges has raised concerns about market confidence.

The price of Fantom (FTM) is currently at a critical point, with the altcoin consolidating within a demand area on the chart. In fact, the $961,000 liquidation pool linked to the $0.88 price level makes this area worth closely monitoring. At the time of writing, the altcoin appears to be trading above the support of an ascending triangle—this pattern is often associated with potential upward movement.

The importance of this price level cannot be overlooked. A closing price above $0.88 could enhance buyer confidence and potentially trigger a rebound.

Conversely, any breakout would trigger liquidation orders, increasing selling pressure and potentially further undermining price stability.

Outflows reflect a shift in sentiment.

In the past 24 hours, the outflow of Fantom from exchanges has sharply decreased. This metric tracks the flow of tokens from exchanges to private wallets and typically reflects investors' confidence levels.

Such a decline indicates that fewer traders are transferring held tokens out of exchanges, suggesting they are hesitant about the short-term prospects of the tokens.

The reduction in outflows correlates with the current consolidation, indicating market indecision. Investors may actually be waiting for clearer signals before taking the next steps.

$0.88 has become a decisive price level for Fantom.

The interaction between the ascending triangle support and the $0.88 liquidation pool creates an interesting dynamic, setting a crucial price level for Fantom's next move.

Successfully holding this level would validate Fantom's triangle pattern and lay the groundwork for a bullish breakout. This could restore investor confidence and reverse the trend of declining outflows.

However, if the $0.88 support fails to withstand bearish pressure, subsequent liquidation pressure may further depress prices. This could undermine the technical structure of the altcoin.

In this case, broader market sentiment and external factors may play a role in determining whether Fantom can maintain its position.

As FTM's price consolidates near key levels, both short-term trading and long-term investing face significant risks.

$0.88 will become the key battleground between FTM's bear market and bull market. The direction of the breakout will imply new bullish momentum or further declines on the chart.