FTX Token (FTT) Might Have Completed Long-Term Correction

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In Brief
  • FTT is trading above the $24 horizontal area.

  • It has broken out from a descending resistance line.

  • FTX might have completed an A-B-C corrective structure.

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FTX Token (FTT) is showing bullish signs after bouncing at a long-term horizontal support area and breaking out from a descending resistance line afterward.

FTT has been falling since reaching an all-time high price of $81 in Sept 2021. The downward movement has so far led to a low of $21 on June 25.

The low was made inside the $24 horizontal support area, which has been in place since Feb 2021. The price swept the June 2021 lows before bouncing and creating a long lower wick, which is considered a sign of buying pressure. 

Despite this sweep and reclaim, the weekly RSI is below 50 (red icon), a reading that is associated with bearish trends. Additionally, it has not generated any bullish divergence yet. 

Short-term FTT breakout

Cryptocurrency trader @Crypto_Scofield tweeted a chart of FTX which shows a breakout from a short-term wedge. 

While the wedge is not confirmed due to the lack of sufficient touches in the support line, it seems likely that the price has already broken out from a descending resistance line. 

The breakout occurred after the daily RSI generated a very significant amount of bullish divergence (green line). 

If the upward movement continues, the closest resistance area would be between $37 and $41. This is the 0.5-0.618 Fib retracement resistance area.

Wave count analysis

The wave count suggests that FTT has completed an A-B-C corrective structure (black) since the all-time high. The sub-wave count is given in red. 

The aforementioned $21 low was created at a confluence of Fib support levels. It gave waves A:C a 1:0.618 ratio (black) and sub-waves one and five (red) an exactly 1:1 ratio. 

As a result of this count and the bullish daily readings, it is possible that the price has bottomed.

For Be[in]Crypto’s previous bitcoin (BTC) analysis, click here


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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