FTX Token (FTT) has been on the rise in the last two days. An extended bullish reversal could soon be confirmed by the price.
As soon as it was announced that FTX had paid £1.33 billion to acquire the assets of the bankrupt digital lender Voyager, the price of FTX Token (FTT), the exchange’s native token, started to rise.
Breakout from the long-term resistance seems very likely, sooner than later.
Since hitting an all-time high of £80.3 in September 2021, FTT has been tumbling beneath a descending resistance line. The weekly chart, however, is unmistakably bullish for a number of reasons.
First, a double bottom has been formed by the price inside the £22.5 horizontal support area. The double bottom is seen as a bullish pattern, which indicates that it frequently results in breakouts.
Second, the bullish RSI divergence and the pattern have come to coincide. Oftentimes, strong upward movements result from such divergences. In addition, the RSI has deviated from bearish divergence trend line.
The A-B-C corrective structure, with waves A:C having reached a ratio of 1:0.618, appears to have been completed at this point. This ratio is the second most common in such corrections.
If a breakout from the long-term descending resistance line does occur, as these signs seem to indicate, the 0.382 Fib retracement resistance level at £43.1 would be the closest resistance area.
The results from the weekly chart are corroborated by the daily one’s. The price of FTT has completed a five-wave upward movement that shaped into a leading diagonal, as measured from the June bottom.
An A-B-C corrective structure seems to have been completed since then, in which the ratio of waves A:C has been almost 1:1. This notion is supported by the movement’s confinement within a parallel descending channel and the bullish divergence in the RSI.