Fantom (FTM) is at a critical point in the cryptocurrency market, especially at the $0.88 level.
Recent altcoin fluctuations show that investors are going through a process that challenges their patience and endurance.
“The $0.88 level being close to the liquidation pool could be a decisive threshold for the future of FTM,” he commented.
Fantom’s price is currently facing a major test at $0.88, with liquidation risks rising amid shifting investor sentiment and lower stock market outflows.
Phantom’s Price Action: Critical Test and Rising Liquidation Risks
Fantom’s price action shows that the $0.88 level is not just a figure, but also a significant support point. While the altcoin is consolidating around this level, a liquidation pool of around $961,000 stands out as a significant factor influencing investor behavior. An upward triangle formation is currently observed on FTM’s charts, indicating that potential upward momentum could occur if the price stabilizes.
If the altcoin can close above the $0.88 level, buyer confidence is expected to increase again, potentially triggering an upward move. However, if it falls below this level, selling pressure could intensify as liquidation orders are activated, potentially sending FTM’s price further into flux.
The latest data shows a significant decrease in exchange outflows for Fantom over a 24-hour period. This data can be considered an indicator of investor confidence, as it tracks the transfer of tokens from exchanges to private wallets. The decrease in outflows indicates that investors are less willing to withdraw their assets from exchanges and that there is uncertainty about the short-term prospects for Fantom.
This declining momentum is in line with the market's consolidation trend, suggesting that investors are more cautious and are waiting for a major momentum signal.
The liquidation pool at $0.88, where the ascending triangle intersects the support point, makes this level a critical point for Fantom’s short-term prospects. Staying above this level could herald a bullish trend and revive investor interest by increasing the validity of the current technical formation. It could also cause a reversal of the recent downtrend in stock market outflows.
However, if the $0.88 support weakens against bear pressure, increased liquidation events could further undermine market confidence and Fantom’s position could become unstable amid broad market volatility and external pressures.
As Fantom’s price action approaches the $0.88 level, both short-term traders and long-term investors should be cautious. This critical price point indicates how the altcoin will strike a balance between bulls and bears, and the market direction for FTM will be definitively shaped in the coming days.