Phantom (FTM) has shown a strong recovery after a recent pullback that caused significant losses to holders. Many investors chose to insure their holdings, contributing to the decline.
However, this period of losses may soon end as Phantom regains momentum, bringing optimism back to the market.
Phantom investors are skeptical:
This week, FTM supply on exchanges surged, with 37 million tokens moving in 48 hours. Investors sold their holdings to secure $31 million in profits, reflecting concerns that the altcoin’s bull run is stalling. Such moves typically signal a decline in confidence in the cryptocurrency’s short-term prospects.
The lack of sustained upward momentum has left many investors worried about further losses. Fears of profits disappearing have prompted holders to dump their tokens, adding to the selling pressure. However, the recent price surge could help ease these concerns, potentially bolstering market sentiment for FTM.
FTM investors are currently in profit. This is the lowest level for this group, indicating a slowdown in selling activity. Historically, when profitability is this low, fewer investors are inclined to sell, reducing downward pressure on the price.
A slowdown in selling could support Phantom’s recovery. With fewer holders liquidating their positions, the altcoin has a better chance of holding onto its recent gains and building on its upward trajectory. This dynamic could help FTM regain crucial price levels in the coming weeks.
FTM Price Prediction: Target $1:
Phantom price surged 23.88% in the last 24 hours, pushing the altcoin above the $0.83 resistance level. Trading at $0.84, FTM is now focused on securing this rise and maintaining its bullish momentum. Maintaining this level is crucial to maintaining the optimism in the market.
If FTM successfully bounces off the $0.83 support level, it could continue its upward trend. This would allow the altcoin to recover the 52% losses it incurred during the second half of December. Recovering $1.03 as support would mark a major milestone, restoring investor confidence and signaling further growth potential.
However, failure to hold above $0.83 could lead to a pullback to $0.76, invalidating the bullish outlook. This scenario would erase part of the recent gains, leaving Phantom vulnerable to a deeper decline towards $0.66. Continued momentum is necessary to avoid further reversals.