FTT surges nearly 400% within a week – Should you buy it now?

Journalist

Posted: November 15, 2023

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion.

• The way forward for FTT and its worth motion could be massively depending on the FTX change being reopened.
• Technical and on-chain metrics have been persuasive of the bullish case however traders ought to train warning.

FTX Token [FTT] noticed huge positive aspects previously week. On the sixth of November, FTT was buying and selling at $1.1195. Information that Gary Gensler, the US Securities and Change Fee Chair, was open to the thought of a rebooted FTX change noticed the token surge increased.

On tenth November, FTT spiked to $5.53, a 394% transfer inside every week. Prior to now 4 days, the worth has slipped towards $3. Was this a brief transfer or has the long-term downtrend been damaged?

The shortage of resistance overhead might see FTT take off

Supply: FTT/USDT on TradingView

The FTX change implosion was accompanied by a freefall in FTT costs. Prior to now yr, the worth has stayed round $1 as the corporate has been in chapter all this time, however latest occasions noticed a leap to $5.

Whereas we will argue that the market construction was bullish, a important stage of resistance at $4.41 was not but breached.

A set of Fibonacci retracement and extension ranges (pale yellow) have been plotted primarily based on the latest transfer upward. Aside from that, resistance ranges from December 2020 and February 2021 have been plotted as effectively.

To the north, these ranges have been those to be careful for. Particularly, the $8.2, $9.86, $10.84, and $15.54 ranges might stall a rally within the coming months.

Such a robust transfer would require huge demand, and that might come within the occasion of extra constructive information developments. As issues stand, from a technical perspective, a retest of the $2.13-$2.86 area introduced a shopping for alternative.

Gauging how dangerous this shopping for alternative could possibly be

Supply: Santiment

The weighted sentiment shot to a excessive not seen in over a yr, as did the MVRV ratio. This meant that long-term holders would probably be happy to liquidate part of their possessions to e book income.

In flip, this might pressure a deeper pullback or perhaps a downtrend.

Learn FTX Token’s [FTT] Price Prediction 2023-24

The availability on exchanges metric additionally jumped to a excessive not seen since March, which pointed towards imminent promoting stress.

Subsequently, patrons should guess solely on what they will afford to lose. A drop under $2.13 would invalidate the concept the rally might prolong increased.