Despite Bitcoin’s little determination to regain its trend in the short term, other market participants seem more confident. The native token of the FTX exchange is one of those that shows good behavior, and to find out where it may be heading, below I perform an analysis of it.
At the time of this writing FTT is trading at $26.20, accumulating a slight gain of 0.48% in the last 24 hours. Thanks to a market capitalization of $2.448 billion, it is ranked 35th in CoinMarketCap’s ranking.
About FTT token
According to the exchange’s own web portal, this token works as a backbone for the FTX ecosystem, offering a system of incentives for users, causing a wave of adoption that grows with the exchange.
The price of the FTT token was one of the ones that rose the most during the crypto market bull rally that occurred earlier this year, due to the great popularity that the exchange of where it is native has been gaining.
The popularity of FTX has been mainly due to the innovation it offers in the field of derivatives. Innovations ranging from pre-IPO futures contracts like Coinbase and Airbnb, to a Wall Street Bets index that tracks the behavior of the DOGE cryptocurrency as well as GameStop and iShares Silver Trust stocks.
Thanks to this, the native exchange token has established itself as one of the largest in the ecosystem. The system of incentives for users, coupled with a coin incineration schedule that has so far managed to reduce the supply in circulation by 10%, creates a solid basis for the price increase to continue.
FTX token technical analysis
Despite the good foundation that this cryptocurrency has, the reality is that during the last months it has been living a great crash, which has been following the general behavior of the crypto market.
FTT’s fall begins after reaching an all-time high of $ 63.13, the product of an unstoppable rise for 6 months.
To give you an idea of the previous rise, the price of the FTX token started this year at $6. This means a profit of 10x for the one who managed to sell at the maximum.
But as nothing goes up in a straight line to the moon, the price began a great correction. The token went on to lose up to 65% with the recent low of $21.91.
Despite the big drop, the inability to mark a low below $22.73, gave us a first sign of exhaustion from sellers.
Now the price is starting a short-term bullish transition, after traversing immediate resistance at $26.35.
If it continues as it goes, FTT should go to challenge the resistance at $30 in the short term.
There is still a relevant bearish tilt, which could put this token in trouble. However, the great bullish force of the first part of this 2021, completely obscures the intentions of the sellers.
Either way, it’s a matter of monitoring support levels. The most relevant is at $22.73. If it is lost, we will be seeing a further correction, giving way to sales up to minimum $20.21.
Weekly chart analysis
As I said, there is still a dominant bullish force, which completely obscures the downward direction of the last few weeks.
It is clear that there is a significant risk that losses will continue to spread. However, the price reaction on weekly support at $24.63 speaks to the possibility that the retracement bottom has already been reached.
We still don’t see a good confirmation that the bulls have regained control, and if we wait for that signal on the weekly chart, then we need to see a resistance break at $33.78.
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