FTX Token (FTT) Bounces Above Confluence of Support Levels

While there are no clear bullish reversal signs, FTX Token (FTT) is trading just above a confluence of horizontal and Fib support levels.

FTX has been moving downwards since Sept 9, when it reached an all-time high price of $84.7. While attempted to initiate an upward movement, this only led to a deviation above the $62.50 area on Oct 25 (green circle). The $62.50 area is now expected to act as resistance. 

So far, it has reached a low of $37.4, doing so on Dec 4. 

Technical indicators are bearish. The MACD, which is created by a short- and a long-term moving average is negative and decreasing. The RSI, which is a momentum indicator is decreasing and is below 50. 

Both of these are bearish signs that are often associated with downward trends.

Short-term bounce

The shorter-term six-hour chart is more bullish. 

It shows that FTT has created a higher low relative to the price on Dec 4. In addition to this, the RSI has generated bullish divergence (green line). This is a bullish sign that often preceded bullish trend reversals. 

In order to confirm this reversal, the token has to break out from the short-term descending resistance line in place since Nov 8. 

If it is successful in doing so, the next resistance would be between $51.6 and $55, the 0.5-0.618 Fib retracement resistance levels.

FTT wave count

Cryptocurrency trader @Altstreetbet outlined a FTT chart, stating that the token has completed its correction.

The wave count does indeed suggest that an A-B-C corrective structure is complete. This means that the upward trend that transpired from late June to the Sept 9 all-time high price could resume. 

FTT is just above the 0.786 Fib retracement support at $35.40, which is also a horizontal support area. In addition to this, waves A:C have an exactly 1:1 ratio, which is very common in such corrective structures. 

Therefore, it is very possible that the correction is complete.

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