FTX Token (FTT): The Interrupted Uptrend

Since it was launched last August, FTX Token (FTT) belongs to the cohort of recently emerged cryptocurrencies that haven’t seen a lot of price action, yet this one has already made a name for itself among traders, mainly because of its good showings against USD, having gained 14.3% in the past 30 days. But the thing that really whets traders’ appetite is the inexhaustible strive to the upside, which FTX Token appears to maintain despite the market crisis that still lingers.

FTT all-time price action chart

Another advantage of FTX is that it represents a class of cryptocurrencies that proved to be one of the most resilient in the time of global crisis - the exchange tokens. It is a native coin of an eponymous exchange that specializes in cryptocurrency derivatives. Similar to Binance Coin, Huobi Token, and the rest, FTT affords discounts on trading fees, OTC rebates, and provides access to socialized gains. We have already reviewed at length the quality of performance and the profiteering potential that such cryptocurrencies are bearing, and FTX Token can be safely labeled as one of the finest of the bunch. 

The uptrend that is hanging in the balance

FTT still fights tooth and nail to remain within the context of an uptrend that began last September, right when the rest of the market was experiencing a steep correction. It means that the price action and the overall behavior of FTX Token can be characterized as counter-systemic, thus appealing due to the fact it allows traders to use this coin as a hedge against falling markets. Lastly, this exchange token is only a few steps away from the all-time high, which was achieved this February at the price level of $2.97.

Giving that presently FTT is priced at $2.38, having gained 2.6% in a week, a single strong upswing could allow the coin to conquer new heights and set it up on a highway to massive gains, the peak of which can’t be accurately predicted at this time.

1-day FTT/USDT chart

Another fascinating thing about FTT is that it showed phenomenal resilience when the cryptocurrency market crashed. Whereas all other coins were losing more than 50% of their value in a matter of hours, FTX Token’s decreased only by 27%, thus allowing the coin to bounce back relatively effortlessly. That bounce could have been anticipated by traders thanks to the bullish checkmate pattern that emerged on the back of an enormous trading volume.

The fact that the humongous selling volume during two days that followed the market crash gave birth only to indecisive candles should have given traders a hint regarding an imminent bullish reaction that kept pushing the price from one lower high to another, until it got stuck at the $2.82 resistance. In doing so, FTX Token came close to a verge of the ascending triangle that must be broken to the upside if the price is to revive the uptrend and hit the new all-time high, after which, as already mentioned, FTT could easily add anywhere from 15% to 30%  in a short period of time.

But in that case, the final step proves to be the hardest as the bears are pushing back vehemently. The fierceness of the struggle is revealed on the MACD indicator, where the MACD line keeps crossing the signal one but without heading to the downside. Trading FTT right now would require placing a tight stop-loss because if the bulls do surrender, the reversal to a downtrend could be swift and violent.

Author: Alex Paulson for Crypto-Rating.com