FTX Token: Can FTT’s recent 15% rally trigger a breakout over this supply zone
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the opinion of the writer.
FTX Token has lost 28% since the start of May, and the longer-term trend on the charts was bearish for the token. That said, there was an opportunity for lower timeframe traders to hitchhike a ride upwards to the $31.1 mark. A strong zone of resistance stands at the $29 area, and the bulls haven’t yet broken through.
It was a little too early to enter a trade on FTT, as the market was at reaching a decision about the next direction after a breakout from a channel. If the $27.6 area can be defended, there could be a move upwards over the next couple of days.
Source: FTT/USDT on TradingView
The H4 chart shows a descending channel (white) formation that FTT has traded within for most of the past month. There was a significant deviation as low as $26 during the May 12 drop. Fibonacci retracement levels (pale yellow) were also plotted based on the swing high and swing low at $34.8 and $25.13.
At the time of writing, the price was at the $28.82 level, which was the 38.2% retracement level. The $28.8-$29.5 area could act as strong resistance. The H4 and higher timeframes show a bearish bias for FTT on the charts, based on the price action.
Since early April, the price has set lower highs, and the downtrend was not yet broken.
Source: FTT/USDT on TradingView
On the H1 chart, the $29.49 level (dotted white) marks a lower high of the downtrend that FTT is on. At the same time, the $27.64 level has been broken in the past couple of days of trading, after a straight red candle took FTT to revisit the $25.6 lows.
On the lower timeframes, the market structure was slightly complicated but
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