Here’s How FTX Token (FTT) Might React to Ongoing Skepticism Within the Market
- FTT couldn’t trigger continued reversals despite securing rebounding ground.
- The asset’s Open Interest fell alongside a price uptick.
FTT endured extended sell-offs following the fiasco around FTX’s liquidity woes. Binance’s decision to halt the FTX acquisition because of corporate results added petrol to FTT’s downward fire. The alternative token suffered severely, witnessing the liquidation of about $5 million within the previous 24 hours.
Buyers battled to protect the baseline support at $1.53 following a market bloodbath that triggered more than 92% losses from November 8 to 10. While writing these lines, FTT traded at $3.07, gaining approximately 22.14% in the past 24 hours.
FTX Hit All-Time Lows
FTT’s bearish move beneath the $22.3 mark triggered a free fall amid investor uncertainties. Meanwhile, the alt saw bounce-back inclinations from the foothold of $1.53 after surrendering most of its price. Nevertheless, the value area at $4.6 – $3.8 restricted this bounce-back while curtailing the coin’s volatility near a somewhat high liquidity territory.
A decisive reversal from the nearest resistance zone might pose significant challenges for FTT buyers. Nevertheless, the correlation with BTC alongside the current broad market cues might welcome trend invalidation for FTT in the upcoming days.
The asset’s latest breakdown dragged FTT beneath its 20, 50, and 200 Exponential Moving Averages. Sellers might strive to dominate near-term trends. Sustained southbound biases by these EMAs might halt short-term buying efforts.
The RSI (Relative Strength Index) still hovered within the oversold territory amidst deteriorated sentiment. Buyers should wait for potential reversals beyond the 41-mark before hoping for selling momentum ease.
Price Increase Alongside Open Interest Dip
Coinglass data showed a 13.5% drop in FTT future OI (Open Interest) across exchanges in the previous 24 hours. Contrarily, the price action recorded a more than 20% increase in that timeframe. Soaring prices amidst slumped Open Interest often indicate bearish tendencies.
As the cash flows out of the marketplace, FTT’s market action might register reversals in the upcoming sessions. Nevertheless, market participants should watch BTC’s movement for potential invalidations. FTT shares a whopping 88% correlation with Bitcoin.
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