Fantom Surges 23% as Selling Pressure Eases

Fantom ( FTM ) has experienced a notable rebound after a substantial downturn that impacted many of its holders significantly. Several investors opted to liquidate their positions, exacerbating the dip in Fantom's value.

Despite previous losses, Fantom's momentum is on the rise, fostering renewed optimism within the market. This improvement in sentiment signals potential end to recent turbulence.

Recently, the amount of FTM on exchanges surged, with 37 million tokens moving within two days. Investors cashed in $31 million, indicating skepticism about the altcoin’s short-term growth. Such behavior underscores concerns about its halted upward trajectory.

The absence of steady upward movement has left stakeholders uneasy about potential further declines. Fear of diminishing profits has led to increased selling, intensifying downward pressure. Nonetheless, the current price increase might reduce these worries, stabilizing FTM's market sentiment.

At present, only 10% of active FTM investors are profiting, the lowest level for this group. This scenario suggests selling activity might decelerate since fewer owners usually sell in such conditions, easing price pressure.

Slower selling could bolster Fantom's recovery prospects. As fewer investors offload, FTM might maintain and potentially extend its recent upward trend. This shift could enable the altcoin to reclaim key levels in the forthcoming weeks.

Fantom’s price increased by 23.88% within a day, surpassing its $0.83 resistance point. Trading around $0.84, the focus now is on maintaining this ascent and sustaining bullish momentum. Staying above this mark is crucial for positive market outlook.

If FTM bounces back from the $0.83 level, it may continue its uptrend, potentially recovering the 52% losses incurred in December’s latter half. Success in reclaiming $1.03 as a support would signify a critical milestone, boosting investor trust and indicating additional growth chances.

However, failure to remain above $0.83 can result in a dip back to $0.76, undermining the bullish narrative. This could reverse recent gains and expose Fantom to a further decline towards $0.66. Sustained momentum is essential to prevent further setbacks.