FTX Price At Make Or Break Situation

The technical chart shows two contrary patterns are playing tug of war with the FTT/USDT pair. First, the U-shaped recovery indicates a rounding bottom pattern which is a bullish reversal pattern. However, on the flip side, the sets of new higher highs and lows follow a rising wedge pattern which encourages a significant downfall. Thus, which price pattern will the FTT price choose in the end?

Key points

• FTT price is facing supply pressure from the $32.7 resistance zone
• The 20-and-100-day EMA nearing a bullish crossover attracts more buyers in the market
• The intraday trading volume in the FTT token is $389.2 Million, indicating a 3.71% loss.

Source- Tradingview

The ongoing recovery began when the FTT/USDT pair bounced back from the $21.15 mark. Though the trend reversal is triggered with a rounding bottom pattern, the price action strictly responds to wedge pattern trendlines.

The first is a bullish reversal pattern that fuels the bullish trend and may extend its recovery above the overhead barrier of $32.7. This resistance breakout may intensify the buying momentum and drive the FTT price 6.63% higher to hit $34.85.

On a contrary note, the second pattern is a continuation pattern that bolsters the resumption of the prevailing downtrend. Thus, a support trendline has been maintaining the ongoing recovery in FTT price. Hence, a breakdown from this trendline will trigger the bearish pattern and may plummet the coin 12% lower to retest $13.

Anyhow, the coin price reasoning near the apex of the wedge pattern indicates a no-trading zone. Moreover, a successful breakout from either pattern will undermine the other pattern’s influence. 

Technical indicator

Relative Strength Index: a negative divergence in the RSI slope concerning the price action indicates weakness in bullish momentum. Thus, this divergence would bolster the wedge pattern theory.

ADX indicator: the sideways movement in the ADX slope indicates uncertainty among market participants about the existing trend.

b the 20-day EMA has flipped two dynamic support adding extra barriers against market sellers. Moreover, the 20-and-100-day EMAs are on the verge of bullish crossover may accelerate the bullish momentum.

• Resistance level- $32.7 and $35
• Support levels- $30 and $26.5