FTX Token (FTT) Finds Footing After Drop Succeeding All-Time High

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In Brief
  • FTT has fallen below the $62 horizontal area.

  • It has created a triple bottom pattern.

  • It is potentially in wave B of an A-B-C corrective structure.

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FTX Token (FTT) has been moving downwards since reaching an all-time high price on Sept 9, and recently fell below the $62.5 horizontal support area.

However, the token has created a short-term bullish pattern above $52 and could move towards the closest resistance.

FTT drops below support

FTT has been moving downward since Sept 9, when it reached an all-time high price of $84.74.

On Sept 19, it broke down below the $62.5 horizontal area, which is now likely to act as resistance. 

Afterwards, FTT found support above $52, the previous resistance area that has now turned to support. 

Despite the bounce, technical indicators in the daily time-frame are bearish. The MACD and RSI are both decreasing. The former is nearly negative while the latter has dropped below 50.

FTT Drop
Chart By TradingView

Short-term movement

Cryptocurrency trader @TradingTank outlined a FTX chart, stating that the token has bounced above minor support. 

FTT movement
Source: Twitter

The shorter-term six-hour chart shows that FTX is holding above the $52 area and has created what looks like a triple bottom, which is considered a bullish pattern.

Furthermore, there is a bullish divergence developing in both the RSI and MACD. This is a sign that a bounce is expected. 

If one occurs, the closest resistance would be at $66.5. This is the 0.5 Fib retracement resistance level and a horizontal resistance area.

FTT Triple bottom
Chart By TradingView

Wave count

The wave count shows that FTT completed a five wave bullish impulse in the period from July 20 to the Sept 9 all-time high price. 

Therefore, it is likely that the ensuing movement is part of an A-B-C corrective structure.

If so, the token is currently in the B wave, which would take it towards the $65 resistance. Afterwards, a final drop could occur.

FTT Wave count
Chart By TradingView

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

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Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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