FTX Token (FTT) has experienced a 14% increase in price over the last 24 hours, establishing it as the leading gainer in the market. However, this rise appears to be largely fueled by speculative trading instead of a tangible uptick in demand for FTT.
The technical analysis of the altcoin indicates that it may retract some of these gains in the short term. Here’s the rationale.
FTX Token Rises But Not Due To Demand
Despite the price surge over the past 24 hours, FTT’s negative Chaikin Money Flow (CMF) suggests a potential pullback ahead. Currently, this indicator, which quantifies the flow of money in and out of the market, sits at -0.26, showing a bearish divergence from its increasing price.
This disconnect between FTT’s upward price trajectory and negative CMF indicates that the rally is likely unsustainable, pointing towards a possibility of a reversal. If selling pressure escalates, the price may adjust downward once the current momentum diminishes.
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Additionally, the FTT’s Parabolic Stop and Reverse (SAR) indicator corroborates this pessimistic view. Currently, the dots from this indicator are positioned above FTT’s price, signaling the prevailing bearish sentiment surrounding the altcoin.
The Parabolic SAR indicator assesses an asset’s trend and helps identify potential price reversal points. When the dots are situated above the price, it illustrates a bearish trend. This often signifies downward momentum in the market, leading traders to consider selling or initiating short positions.
FTT Price Prediction: A Correction Seems Likely
As speculative trading dwindles, it is probable that FTX Token’s price will correct itself, potentially erasing some recent upward movement. Based on Fibonacci Retracement analysis, the altcoin might descend to a support level of $1.25. If this support level does not hold, a further decrease towards the $1 mark may occur.
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However, this bearish perspective could change if FTT sees a notable increase in new demand. In that case, the asset could maintain its upward path, surpassing resistance at $2.93 and potentially reaching up to $3.53.
Disclaimer
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