Key Takeaways:
- FTX exchange’s native token FTT broke above four-month resistance.
- Additionally, FTT’s MA trendlines are forming a bullish technical pattern on the daily charts.
NEW DELHI (CoinChapter.com) — Crypto derivatives exchange FTX’s native token FTT broke above its four-month-old trendline resistance, indicating a likely extension of its upside pullback phase.
In detail, the FTT price has been trending downwards ever since it reached a new all-time high of over $87 on Sep. 7. In doing so, the cryptocurrency dropped nearly 62% before showing signs of bottoming out in January and pullback by over 25% in Jan. 2022.
FTX Token Golden Cross Ahead
As FTX logs a rebound rally, its likelihood of extending the upside momentum has also increased as its moving averages form a golden cross.
Simply put, FTX’s 20-day exponential moving average (20-day EMA; the yellow wave) looks likely to close above its 50-day EMA (the blue wave) — a buy signal in the near term.
A golden cross usually indicates a bullish uptrend on the horizon. As such, bulls would likely try to push above the FTT price’s immediate resistance at $50, near the FTX token’s 100-day MA line. A strong upside rally would see FTX push above immediate resistance to target $53 price levels.
FTT might target the $57 resistance level before pulling back if there is a sustained uptrend. However, the relative strength index for the FTX token is steadily moving towards overbought levels, though it is currently neutral with a value of $65.29 on the daily charts.
Also Read: Crypto.com lost $18.82 million worth of Bitcoin in the latest hack, alleges analysts.
An overbought RSI usually indicates an asset’s price action is ready for a trend reversal.
FTT analysis: Fundamentals
FTX also announced a new branch, FTX Ventures, setting aside $2 billion to fund emerging companies in the crypto sector.
Also Read: FTT eyes new record high as parent exchange FTX hits $25B valuation.
We are excited to back builders who share our values: move fast, make the impossible possible, do right by users, follow-through, and improve the world. We will do right by the teams we invest in, by adding strategic value and leveraging our resources, technical and operational expertise across FTX
Excerpt from FTX Ventures announcement
FTX stated that the new project would make it easier for new projects to acquire funds despite their size or stage.
As such, combined with FTT’s golden cross, FTX may likely log more bullish rallies ahead. At the time of writing, the FTX token was changing hands at $48.14, up 3.19% on the day.
