FTX token [FTT] has seen an impressive 61.43% surge in the past month, a notable increase in a relatively short period in today’s market environment.
According to analysis by CryptoCrypto, this bullish trend is just starting, indicating that FTT might be preparing for another substantial price jump, as elaborated below.
Key Support Zone Driving Buying Pressure
Currently, FTT is trading in a crucial support area, known for attracting significant buying interest and triggering upward momentum, as evidenced by past occurrences.
This support zone ranges from $1.9305 to $1.7289. Recently, FTT has demonstrated strong support in this range, leading to a 15.36% price surge.
If the buying pressure continues, FTT could aim for a higher resistance level at $3.4343. Nonetheless, traders should be mindful of potential minor hurdles at $2.3330, slightly above the current price point.
Active Traders Fueling FTT Growth
Further analysis from CryptoCrypto indicates that traders are actively accumulating FTT, potentially driving its price upwards as key metrics like Funding Rate and Open Interest, monitored by Coinglass, show positive signals.
Currently, the Funding Rate stands at a favorable 0.0449%. A positive Funding Rate signifies that the futures contract price of a cryptocurrency surpasses its spot price.
In such a scenario, long traders, who anticipate price appreciation, pay fees to short traders, indicating positive sentiment towards FTT.
In addition, the growing Open Interest, up by 2.69% to $1.1 million, is contributing to this positive outlook. This uptrend suggests an increase in long positions being initiated and maintained.
Despite prevailing bearish sentiment, with traders actively acquiring FTT positions, a significant uptrend seems imminent.
Exercise Caution Amid Bullish Sentiment
While optimism pervades the market, it is essential for investors to exercise caution as the Accumulation/Distribution (A/D) indicator nears a notable resistance trendline.
If the price climbs to this level, potentially coinciding with the earlier mentioned minor resistance at $2.3330, FTT could witness a slight pullback towards the $2.0486 support before resuming its upward trajectory.
Nevertheless, for the support level at $2.0486 to remain intact, positive market sentiment needs to be sustained.