Following the latest Binance-FTX saga, the price of FTT decreased heavily by 83% today alone, as it now trades below $5. Over $80 billion was wiped out from the overall crypto market capitalization within just 5 hours of trading, putting the market in a severe bearish condition.
The current liquidation of the FTX token has caused a staggering loss in price as the market made a sharp nosedive to the $2.51 level. However, it has recovered a bit to around $5, but the sellers are still showing strong interest. There’s no hope for significant recovery at the moment as more sell-off is imminent.
As seen on the weekly chart below, the price collapsed after failing to regain momentum above the $22 level; the orange zone has acted as major support since February.
The recent breakdown ultimately gave the bears control on a weekly. Although investors and holders could take advantage of this dip to bag more tokens for a long-term return on investment – ROI if the price can float above the $2 level.
From a technical standpoint, it appears the token is yet to find a base bottom as the price continues to decline. The trend is still respecting the weekly descending channel forming since September. A clear break above this channel would indicate a nice reversal for buyers to take advantage of. Looking at the setup, it doesn’t look like that will happen soon.
FTX Token Price Analysis (FTTUSDT) – Weekly Chart
Following the colossal drops, here are the supports we need to consider in case of a further dip. The $3.58 support level has just been tested, coupled with a new daily low at the $2.51 level. If the price plummets below these mentioned levels, FTT will likely target the $1.78 support level next.
There are no signs of positive moves at the moment. But if we can see a mild recovery above the $10 price level, the resistance area to watch for a retest is the $14 and the $20 levels, respectively.
Key Resistance Levels: $10, $14, $20
Key Support Levels: $3.58, $2.51, $1.78
- Spot Price: $6
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: ivanbabydov/123RF // Image Effects by Colorcinch
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