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FTM Retreats As TVL Shrinks by 40% in Four Days

Key Insights

  • FTM retreats amid fast decline in TVL.

  • Total Defi TVL trends are also not encouraging, but there is no panic.

  • FTM needs to stay above the important support level at $1.25 to avoid an additional sell-off.

Fantom found itself under strong pressure as TVL declined from $12.09 billion to $7.14 billion amid worries about the exit of Yearn Finance founder Andre Cronje.

DeFi Industry Faces Test Amid Global Rush to Safety

Total DeFi TVL continues to move lower at a measured pace, and the recent trend looks like a normal correction after a huge upside move.

The key question is whether total DeFi TVL will be able to return to growth amid global rush to safety. Safe-haven assets like the U.S. dollar or gold are in a rally mode, while leading cryptocurrencies like Bitcoin and Ethereum have had mixed performance in recent weeks.

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The above-mentioned internal developments in the DeFi space may put additional pressure at times of uncertainty, and traders will have to closely monitor the dynamics of the total DeFi TVL to evaluate whether there is “contagion” from the recent developments in yearn.finance.

FTM Entered the Key Support Area

FTM found support near $1.32 and is currently trying to get back above the $1.40 level. In case this attempt is successful, FTM will move towards the resistance level near $1.43. A move above this level will push FTM towards the resistance at $1.47. In case FTM manages to settle above $1.47, it will head towards the next resistance at $1.53.

On the support side, FTM needs to stay below $1.40 to have a chance to develop downside momentum in the near term. The next support level for FTM is located near $1.32. If FTM declines below this level, it will head towards the support at $1.25.

It should be noted that FTM has recently entered into the key $1.25 – $1.45 support area, and a move below $1.25 will likely lead to a sell-off.

This article was originally posted on FX Empire

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