Over the past month, FTX token [FTT] has surged by an impressive 61.43%, showcasing remarkable growth seldom seen in today’s current market conditions over such a brief timeframe.
Based on analysis conducted by CryptoCrypto, this bullish trend is just commencing, indicating that FTT might be gearing up for another substantial price surge, as elaborated below.
Key Support Area Driving Buying Momentum
At the time of writing, FTT was trading within a key support region, recognized for attracting notable buying pressure and triggering upward movements, as witnessed in previous instances.
This support range extends from $1.9305 to $1.7289. Recently, FTT has demonstrated a degree of reverence for this level, leading to a 15.36% price increase.
Should the buying momentum persist, FTT is expected to aim for a higher resistance level at $3.4343. Nonetheless, traders should be mindful of potential minor resistance at $2.3330, slightly above the current trading value.
Active Buyers Poised to Propel FTT Upwards
Further examination by CryptoCrypto has revealed that traders are actively engaging in purchasing FTT, which could drive its price upwards as sentiment on critical Coinglass metrics like Funding Rate and Open Interest strengthens.
At present, the Funding Rate stands at a positive 0.0449%. A positive Funding Rate arises when a cryptocurrency futures contract’s price surpasses its spot price.
Under such circumstances, long traders—those expecting price increments—pay a charge to short traders, indicating a bullish sentiment surrounding FTT.
Adding to this positivity is the escalating Open Interest, climbing by 2.69% to $1.1 million. This signifies an increase in opened long contracts and the maintenance of existing positions.
With traders actively financing their FTT acquisitions despite a bearish outlook, a significant uptrend seems inevitable.
Exercise Caution Despite Optimistic Prospects
Even with an optimistic outlook prevailing in the market, it is vital for investors to exercise caution as the Accumulation/Distribution (A/D) indicator nears a significant resistance trendline.
If the price ascends to this level—possibly aligning with the previously mentioned minor resistance at $2.3330—FTT may encounter a slight downturn to the $2.0486 support before continuing its upward trajectory.
Nevertheless, to sustain the support at $2.0486, bullish market sentiment must persist.