Market sentiment surrounding Fantom [FTM] has shifted recently, as indicated by the decrease in the long/short ratio to 0.93, according to Coinglass data. This ratio suggests that short positions are currently being favored by market participants, reflecting a more cautious outlook for the asset in the short term.
Despite the bearish sentiment, Fantom is now trading at a crucial support level after experiencing a 22% decrease in value over the past three days. While this decline has created some pressure on the asset, there are early signs of a potential reversal taking shape.
Source: Coinglass
Potential Upswing Anticipated for Fantom
Records from CoinMarketCap reveal that Fantom has witnessed a 3.5% price surge in the last 24 hours, hinting at a building bullish momentum, particularly as it tests its support at $0.609.
The stability of this support level is notable, with traders eyeing the $0.625 psychological resistance level as the next target if the current bullish trend continues to strengthen.
The asset’s performance around these levels is likely to play a crucial role in determining its future price movements.
Source: Tradingview
Fantom Liquidation Data Indicates Positive Market Sentiment
Upon closer examination of the liquidation heatmap data by CryptoCrypto, there is further evidence supporting a potential bullish trend. The data suggests that approximately $324K worth of Fantom could face liquidation at the $0.625 mark, reflecting a notable increase in buying pressure.
This liquidation zone holds significance, signaling that market participants are gearing up for potential liquidations at this key psychological level, thereby heightening the possibility of a breakout in the near term.
The optimistic tone in the liquidation heatmap reinforces the case for an upward price movement.
Source: Coinglass
With Fantom displaying early signs of recovery, there is a shift in market sentiment that favors the asset’s outlook.
Combining the 3.5% price rise, positive liquidation data, and the stable support at $0.609, there is growing anticipation for a move towards the psychological resistance level at $0.625.