FTT breaks THIS key resistance — Odds of it reaching $3 are…

• Traders seem to capitalize on the short-term speculation volatility, while FTT’s value remains uncertain based on long-term utility.
• Technical analysis and on-chain metrics signal neutral dominance between the bulls and bears.

FTX Token’s [FTT] has surged by 7.16%, with its Trading Volume rising by 346.74% within a day, at press time, according to Coinglass data.

The market is speculating whether FTT’s bullish momentum indicates a potential comeback or a temporary pump fueled by news of FTX’s bankruptcy repayment plan this month.

Price action and technical analysis

At the time of writing, FTT was trading at $2.19 following a breakout above its descending triangle pattern on the 4-hour chart.

The token has been testing the upper descending trendline since the beginning of the year, making lower lowers before gaining bullish momentum above the $1.9 key resistance level. 

The bulls and bears seem to have equal dominance as the price consolidates above this key level, suggesting high volatility and market indecision.

If the consolidation holds above this level, an uptrend toward the $2.5 psychological level and above is possible.

Source: TradingView

On-chain metrics suggest…

FTT has seen its Open Interest rise by 7.31% as trading volume hikes, at press time, signaling increased buying and selling activity.

The token’s Relative Strength Index(RSI) stood at 51, a neutral zone according to Coinalyze data. This shows that the token is neither overbought nor oversold.

The 24-hour Long-to-Short Ratio was at 1 suggesting equal control between buyers and sellers.

Source: Coinglass

However, as of this writing, CryptoQuant data showed that the Total Exchange Netflow is -0.61%. This suggests possible accumulation by large-scale investors as the trading volume rises. 

Who is in control?

Based on technical indicators and on-chain metrics, bulls, and bears show equal strength. According to IntoTheBlock data, large-scale investors hold 97% of FTT, with only 27% in profit.

FTT’s future utility remains uncertain, and holders can only be hopeful as court orders are implemented. The price increase could be fueled by optimism among token holders.

As a result, the token’s price could target the $3 key resistance level following the $1.9 breakout, with bulls taking charge through further large-scale accumulation and increased speculation from retail traders.

However, traders should watch for whale activities that could induce significant price volatilities and short-term pumps to recover losses.