- FTT breaks out of a descending wedge, suggesting decreasing selling pressure and renewed buyer interest at $3.26.
- Critical resistance at $3.50 could shape FTT’s trend; a breakout may target $4.50, while rejection risks a pullback to $2.75.
- Golden cross formation between 50- and 200-day moving averages confirms sustained bullish momentum and growing market optimism.
The FTT token, native to the bankrupt FTX exchange, has surged by 16%, trading at $3.26 at press time. This aligns with the growing optimism surrounding FTX’s reorganization.
As announced, the effective date for the reorganization plan is January 3, 2025, with initial distributions expected within 60 days of this date.
Distributions will primarily occur in stablecoins through partners BitGo and Kraken. Analyst Andrew Griffiths noted FTT has broken out of a descending wedge pattern, associated with bullish market movements.
Bullish Momentum Breakout
FTT has broken out of a descending wedge, a pattern that indicates decreasing selling pressure. This movement suggests a resurgence of buyer activity, leading optimism in the market.
According to Griffiths, the market should watch the resistance zone, which lies near the $3.50. This level is a critical point where sellers might re-enter the market. A sustained rise above this zone could suggest continued bullish momentum, while a rejection may pull the price back to lower levels.
The price trends align with broader bullish indicators, supported by moving averages and high trading volumes. The 50-day moving average currently is at $2.83, while the 200-day moving average is at $2.75.
Their upward movements confirm sustained positive sentiment. The formation of a golden cross, where the 50-day average crosses above the 200-day average, adds weight to the ongoing bullish trend.
Key Resistance Levels
FTT now nears the critical $3.50 resistance level, which has been tested multiple times in recent months. Sellers have historically dominated this zone, but a breakout could drive the price toward higher targets, such as $4.00 or $4.50. However, any failure to overcome this level may result in a pullback to $3.00 or even the $2.75 support zone, which aligns with the 200-day moving average.
Additionally, market activity has shown increased activity during key surges, with the current volume standing at 88.75 million. Such activity shows increased interest, though the market should remain keen on shifts in momentum, particularly near resistance levels.
Market Trends
FTT’s upward movement comes after a period of consolidation between October and November where the token was trading between $2.00 and $3.00. However, the recent breakout above $3.00 indicates renewed bullish momentum.
Moving forward, monitoring the $3.50-$3.70 resistance range is crucial. A break above these levels could boost the bullish outlook, while failure may suggest a temporary consolidation or retracement. Griffiths emphasizes the importance of observing how FTT reacts at this zone to gauge its next direction.
