FTX Token (FTT) Surges 276%: Is Another Upward Move Brewing?
- Demand for FTT increased after the U.S. DOJ sanctioned Binance, leading to a 30-day high.
- With strong support at $2.94, FTT may retest $4.76 if sellers halt profit-taking.
- The 9 EMA needs to crossover the 20 EMA to confirm the short-term uptrend.
The value of FTX Token (FTT) has increased by 276% in the last seven days, according to data from CoinMarketCap. The price increase could be linked to the widespread jump in altcoin value since October. However, demand for FTT increased again around November 21, as indicated by the FTT/USD 2-hour timeframe.
Riding on Binance Challenges
The increase in demand was fueled by U.S. DOJ sanctions on Binance. One reason why FTT positively reacted to the development around Binance was because the CZ formerly led-exchange had a hand in its 2022 collapse as FTX was Binance’s fiercest competitor at that time.
Like the FTX crash period, Binance has recently experienced a surge in outflows as Coin Edition previously reported.
On 21 November, buying pressure appeared at $2.94, and this region was able to act as support for FTT. As demand for the token increased, the price continued to rise, hitting as high as $4.76 on November 23.
Meanwhile, there has been some profit-taking between the $4.76 high and $4.00 low of November 24. But in the last 24 hours, the price increased again by 3.78%, exchanging hands at $4.37 at press time.
One reason for the hike was the resurging buying momentum indicated by the Relative Strength Index (RSI). On November 24, the RSI went down to 46.43. But at the time of writing, the reading was 54.78.
Should the RSI reading continue to increase, then FTT may retest $4.50 for a start. However, that would mean that sellers would refrain from dumping the token.
FTT to Retest $4.76?
The Moving Average Convergence Divergence (MACD) also showed that there could be room for more upside. This is because the MACD had recently recovered into the positive region.
Also, if the 12-day EMA (blue) eventually flips the 26-day EMA (orange), then FTT’s upward momentum could be confirmed. Should this happen, the token may go as high as reaching $4.76 once more.
For the time being, FTT needs more buying pressure if it is to aim at $4.76, based on indications from the Exponential Moving Average (EMA). At press time, the 9 EMA (blue) shown below, had jumped above the 20 EMA (yellow). This is typically a bullish sign.
But the crossover did not seem convincing enough as 20 EMA seemed really close to the 9 EMA.
If the 20 EMA reaches the same position as the 9 EMA, then FTT may consolidate around $4.30 to $4.35 in the short term. However, if the 9 EMA extends its dominance, a rise in price could be plausible.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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