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

  • The significant drop in altcoin outflows raises concerns about market confidence.

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

The importance of this price level cannot be ignored. A close 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 from exchanges for Fantom has sharply decreased. This metric tracks the flow of tokens from exchanges to private wallets, often reflecting 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 token.

The decrease in outflows corresponds with the current consolidation, indicating market indecision. Investors may actually be waiting for clearer signals before taking the next step.

$0.88 has become a decisive price level for Fantom.

The interaction between the ascending triangle's support level 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 level fails to withstand the pressure from bears, 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 critical levels, both short-term trading and long-term investing face significant risks.

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