FTT Rising Strong Aiming at the 34 Dollar Barrier What Will Happen Now

CoinJiexian reported:
In just one month, the FTX token [FTT] has surged by 61.43%, a significant increase in such a short period of time in the current market.


This bullish momentum has just begun, which means that FTT may be preparing for another significant price increase as described below.
Demand zone will drive buying impulse
At the time of writing, FTT is trading within a demand zone, a price range known for attracting significant buying pressure and catalyzing an upward trend, as seen in the previous two instances.
The range of this demand zone is from $1.9305 to $1.7289. Recently, FTT has shown respect for this level, leading to a 15.36% price increase.
If the buying momentum continues, FTT could target the upper resistance level of $3.4343. However, traders should take note of the potential minor resistance level at $2.3330, slightly above the current price.


Active buyers driving FTT higher
Further analysis by AMBCrypto shows that traders are actively buying FTT, which could drive its price higher as Coinglass improves key indicators such as funding rates and open interest sentiments.
Currently, the funding rate is positive at 0.0449%. When the price of a cryptocurrency futures contract exceeds its spot price, the funding rate is positive.
In this case, long traders (those betting on price increases) pay fees to short traders, indicating a bullish sentiment surrounding FTT.


Facilitating this optimistic sentiment is the continuous growth of open interest contracts, which has increased by 2.69% to reach $1.1 million. This indicates the opening of more long contracts and the maintenance of existing positions.
Despite the bearish market outlook, traders are still actively financing purchases of FTT, suggesting a significant upward movement is imminent.
Despite the positive outlook, caution is still necessary
Although its price has increased by double digits in the recent past, the negative Chaikin Money Flow (CMF) for FTT suggests a possible pullback. At the time of writing, this indicator, which measures the amount of money flowing into and out of the market, is at -0.26, forming a bearish divergence with its price.
The divergence between the FTT price increase and the negative CMF value suggests that the upward trend is not sustainable, indicating that the rise is driven by speculative trading rather than strong market demand. This situation typically signals an imminent reversal. If selling pressure intensifies, the price may correct downwards once the upward momentum weakens.


Furthermore, the settings of the Parabolic Stop and Reverse (SAR) indicator for FTT also confirm this bearish outlook. At the time of writing, the indicator’s dots are above the FTT price, reflecting an overall bearish sentiment compared to altcoins.
The SAR indicator measures an asset’s trend and identifies potential price reversal points. When its dots are above the price, it indicates a bearish trend. This suggests that the market is experiencing a downward trend, which traders typically interpret as a sell or short signal.


Meanwhile, it is crucial to remain cautious as the Accumulation/Distribution (A/D) indicator approaches a significant resistance trendline.
If the price rises to this level (possibly coinciding with the mentioned minor resistance level at $2.3330), FTT may experience a minor decline to the support level of $2.0486 before resuming its upward trajectory.


However, to hold the support level at $2.0486, the market sentiment must remain bullish.
FTT price prediction: Adjustment likely to occur
With the fading of speculative trading, the price of the FTX token may experience a pullback, potentially giving up some of its recent gains. Its Fibonacci retracement analysis suggests that the altcoin may fall to the support level of $1.25. If this support level fails to hold, we may see further decline towards the key level of $1.
However, if there is a surge in new demand for FTT, this bearish outlook may be overturned. In that case, the asset may maintain its upward trajectory, break through the resistance level of $2.93, and potentially rise to $3.53.
In summary, FTT is expected to potentially rebound, supported by the demand zone that catalyzes the upward price trend. However, in the short term, a temporary pullback to the support zone for FTT is anticipated.