Will Buyers Make A Comeback?

Marking the last week in the red, the bears crash the FTT price as they gain control at the overhead resistance of $5.56. With multiple bearish engulfing candles dominating the daily chart, the bullish gains clearout for remarkably. 

Further, the FTT crypto traps multiple bulls with a fakeout rally of a rising wedge pattern and breaks the streak of higher-low formations. With this sudden crash, the chances of a prolonged correction for FTX are on the rise. 

Source – Tradingview

With a 35% downfall last week, FTT price action forms multiple bearish candles to breach below the $4 mark, reflecting a sharp rise in the selling spree. The increased supply pressure is clearly visible in the increased trading volume and warns of a deeper correction.

Crossing below the support trendline of the rising wedge, the fakeout gains momentum and retests the rising 50-day EMA. With the dynamic support in action, a short-term relief phase is observed in the FTT price trend.

Currently, the FTT price trades at $3.774 with an intraday jump of 4.63%, signaling a possibility of a bounce back. Considering the buyers manage to sustain the newfound momentum, a bullish comeback seems possible after a short consolidation.

Technical indicators:

RSI: The sharp fall in FTX market value results in a quick retracement in the daily RSI line, reflecting a sharp fall in bullish momentum. With the RSI indicator reflecting a selling spree in motion, the crypto may soon enter the oversold zone. 

EMA: Following the golden crossover, the bullish trend in the 50-day EMA provides dynamic support to the retracement. 

MACD: The bearish crossover in the MACD and signal lines blast off the trend reversal siren for the FTT crypto. 

Will FTT Price Reach $2?

As per the Fibonacci retracement levels, the ongoing correction trades between 38.20% and 50%. With a demand dominant zone near the 50% level at $3.28, the chances of further correction seem minimal. However, the increased selling resulting in a fall down can retest the 61.80% level at $2.74 or even $1.97 of 78.60%.

Conversely, a bounce back in FTX market value above the 38.20% level at $3.822 will result in a jump to $4.488.