FTX Token (FTT) has experienced a significant price increase of 14% within the past 24 hours, making it the top performer in the market. However, experts suggest that this surge is driven mainly by speculative trading rather than a genuine increase in demand for FTT.
Technical analysis of FTT indicates a potential pullback in the near future. The negative Chaikin Money Flow (CMF) of -0.26 suggests a bearish divergence with the rising price, implying that the uptrend may not be sustainable and that the rally is fueled by speculative trading rather than organic market demand. This often precedes a reversal, and if selling pressure intensifies, the price could correct downwards after the momentum fades.
Furthermore, the Parabolic Stop and Reverse (SAR) indicator for FTT confirms this bearish outlook. The dots of the indicator are positioned above FTT’s price, indicating a bearish trend and suggesting downward momentum. Traders often interpret this as a signal to sell or take short positions.
Based on Fibonacci Retracement analysis, it is likely that FTT will experience a correction as speculative trading subsides. The altcoin could potentially drop to the support level of $1.25, and if that support fails, further decline towards the $1 mark may occur.
However, it is important to note that this bearish outlook can be overturned if FTT sees a surge in new demand. In such a scenario, the asset could sustain its upward trajectory, breaking through resistance at $2.93 and potentially reaching as high as $3.53.