FTX Token, FTT, has experienced a notable surge of 7.16%, accompanied by a significant 346.74% increase in Trading Volume within a day, as per the latest data from Coinglass.
The current market sentiment is divided, with some speculating that FTT’s bullish momentum signals a potential resurgence, while others believe it might just be a short-lived spike driven by recent news about FTX’s repayment plan following bankruptcy rumors.
Analysis of Price Movement and Technical Indicators
At the present moment, FTT is trading at $2.19 after breaking out above a descending triangle pattern on the 4-hour chart.
Since the start of the year, the token has been grappling with the upper trendline, consistently forming lower lows until recently gaining momentum above the critical $1.9 resistance level.
The current scenario indicates a balance between buyers and sellers, leading to consolidation above this key level, signaling high volatility and uncertainty in the market.
If the token manages to sustain this consolidation above the resistance level, there is a possibility of an upward trend targeting the psychological barrier of $2.5 and beyond.
Insights from On-chain Data
FTT has witnessed a 7.31% increase in Open Interest alongside the surge in trading activity, hinting at heightened buying and selling engagements.
According to Coinalyze data, FTT’s Relative Strength Index (RSI) is currently at 51, positioning it in a neutral zone, indicating a balanced market sentiment without any extreme overbought or oversold conditions.
The 24-hour Long-to-Short Ratio stands at 1, pointing towards an equilibrium between buyers and sellers.
Despite these factors, recent insights from CryptoQuant reveal a Total Exchange Netflow of -0.61% at the time of writing, implying a probable accumulation trend among major investors coinciding with the surge in trading volume.
Participants in the Market
Considering the technical signals and on-chain analytics, both bullish and bearish camps appear evenly matched. Data from IntoTheBlock indicates that large investors hold a massive 97% of FTT, with only 27% currently enjoying profits.
The future utility prospects of FTT remain ambiguous, and stakeholders can only remain optimistic as legal directives unfold. The escalating token value could result from a positive outlook among token holders.
Therefore, with the breakout above $1.9, it is plausible for FTT to aim for the $3 resistance level, propelled by substantial accumulation by major players and growing speculative interest from retail investors.
But, traders need to be vigilant of potential whale activities that might lead to significant price fluctuations and short-lived price surges aimed at recuperating losses.