The FTX Token (FTT) is likely to have completed its regulatory structure. This will be confirmed by a break above the wedge where it is currently trading.

Weekly Outlook

The FTT has been falling since September 9 after hitting an all-time high of $85.74. So far, it’s down 58%.

The token has found some support near the $34 region, which has consistently acted as both resistance and support since February 2021. As the price approaches it from above, this zone is expected to continue to hold as support.

Although the drop is large, there is a very interesting bullish development in the form of a hidden bullish divergence on the RSI. Such divergence is usually a sign of trend continuation, and since the long-term trend is bullish, a continuation of this move is likely.

The fact that the divergence occurs on the weekly time frame adds to its importance.

Weekly FTT/USDT Chart | Source: TradingView

Falling wedge pattern

The daily chart shows that FTT is trading inside a descending wedge. The wedge is often viewed as a bullish pattern, meaning that a breakout to the upside would be the most likely scenario.

Similar to the weekly time frame, there is a clear bullish divergence forming on the daily RSI (green line) and also on the MACD line. Divergence in the MACD line is quite rare and usually leads to significant movement afterwards. This is visible in April 2021 when the indicator creates a bearish divergence (red line) before the price drops 65%.

Therefore, the current divergence could lead to a similar move, but to the upside.

Daily FTT/USDT Chart | Source: TradingView

count waves

The highest number of probable waves indicates that the FTT has just completed an ABC correction (black). The number of partial waves is shown in red. Waves A and C have a nearly 1:1 ratio, supporting the possibility that this is the correct number of waves.

To confirm this, the FTT needs to move above the bottom of wave A (green line) at $48.10, which also leads to a breakout of the descending wedge.

Daily FTT/USDT Chart | Source: TradingView

The number of alternating bearish waves shows that the FTT is indeed stuck in a bearish 5-wave (black) impulse. In this case, the previously proposed wave C would be wave three, although the number of sub-waves remains the same.

If this is the case, the FTT will not break above $48.17 but will be rejected and drop to $20.

Daily FTT/USDT Chart | Source: TradingView

FTT/BTC

Trader @Tradecraxt_X tweeted an FTT chart and said the pair could continue higher for the intraday period.

The source: Twitter

FTX/BTC has since broken the parallel ascending channel and confirmed it as support (green icon) on Jan 22. Such breakouts and retests are often preceded by strong upward moves.

If the ongoing uptrend is to continue, the next resistance will be found at ₿0.013. This is the 0.5 Fib retracement resistance and horizontal resistance area.

Daily FTT/BTC Chart | Source: TradingView

You can see the FTT prices here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to beincrypto