FTX token (FTT) finds foothold after drop to all-time high
The FTX token (FTT) has been declining since it hit an all-time high on September 9 and recently fell below the horizontal support area of $ 62.5.
However, the token has created a short term bullish trend above $ 52 and may move to the nearest resistance.
FTT falls below the support
FTT has been down since September 9 when it hit a record high price of $ 84.74.
On September 19, it fell below the horizontal area of $ 62.5, which is now likely to act as resistance.
Subsequently, FTT found support above $ 52, the previous resistance area which has now turned to support.
Despite the rebound, the technical indicators for the daily horizon are bearish. The MACD and the RSI are both down. The first is almost negative while the second has fallen below 50.
Short term movement
Cryptocurrency trader @TradingTank described an FTX chart, indicating that the token rebounded above minor support.
The six hour short term chart shows that FTX is holding above the $ 52 area and has created what looks like a triple bottom, which is seen as an uptrend.
Additionally, a bullish divergence is developing in both the RSI and MACD. This is a sign that a rebound is expected.
If that happens, the closest resistance would be at $ 66.5. This is the 0.5 Fib retracement resistance level and a horizontal resistance zone.
Number of waves
The wave count shows that FTT completed a five wave uptrend in the July 20 period at the record September 9 price.
Therefore, the ensuing movement is likely to be part of an ABC corrective structure.
If so, the token is currently in wave B which would lead it towards the resistance of $ 65. Thereafter, one last fall could occur.
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