Can Improved Sentiments Trigger a Breakout in FTX Token Price?Can Improved Sentiments Trigger a Breakout in FTX Token Price?
The weighted sentiment curve has surpassed the zero line indicating a bullish bias among the investors.
The daily chart highlights the formation of a descending channel pattern with the price in a correction phase.
FTX Token price gained traction and surged nearly 3.3% in intraday today. The bulls made a strong comeback in the recent sessions due to which the FTX token snapped off the monthly losses and may intend to rise further.
Despite the positive projections in the short term, the long term trend still awaits for a breakout of an ascending triangle pattern developed over the daily chart. At present, the FTT price was lagging nearly 18% from the 200 day Exponential moving average.
However, the analysts have noted significant changes in the on-chain metrics which indicates the increasing presence of the buyers in the market and the price may take a bullish turn in the short term.
FTX, a centralized cryptocurrency exchange founded by Sam Bankman-Fried in 2019, is backed by notable trading companies such as Almeda Research, OTPP, Temasek, BlackRock, Coinbase Ventures, and Sequoia Capital.
Later In 2020, FTX introduced its exchange token, FTX Token (FTT). This ERC-20 standard token is actively utilized by participants within the FTX ecosystem.
Improved Sentiments May Heighten The Demand
As per the analysts, the weighted sentiment curve has surpassed the zero line to shit its territory from negative to positive. The weighted sentiment curve represents the overall biasness of the traders and investors whether it is bullish or bearish.
The shift in the curve from bearish to bullish reflects the increasing participation of the bulls which may further improve the FTT price. Additionally, the transaction volume has grown by 60% to $22.27 Million a day indicating a heightened demand.
Moreover, the volume to market capitalization ratio at 4.67% suggests low volatility. It has a live market capitalization of $459.94 Million and ranks 123rd in the cryptoverse. It has a circulating supply as well as a total supply of 328.89 million FTT tokens.
Can FTX Token Mark The End Of A Correction
The daily chart highlights the formation of a descending triangle pattern with the price currently retesting the upper trendline resistance. The improved sentiment and heightened demand could further push the price triggering a breakout of the pattern.
A sustained breakout above the trendline resistance may validate a bullish reversal in the crypto and the price may rise towards the supply of $2.16 level. The short term trend outlook has turned bullish above the 20 and 50 day exponential moving average.
At the time of writing, the RSI line was placed at 51.1 points and that of the 14 day SMA line was placed at 49.8 points. Both the lines were placed above the mean line and were headed upwards indicating a bullish outlook in the short term.
FTX token surged 3.3% intraday, snapping monthly losses with bullish momentum. Despite short-term gains, a long-term breakout from an ascending triangle pattern is awaited. FTT price lags 18% below the 200-day EMA. Analysts have noted a shift in weighted sentiment from negative to positive, indicating increased bullish participation.
Moreover, the transaction volume grew 60% to $22.27 million, suggesting heightened demand. The volume-to-market cap ratio at 4.67% indicates low volatility. The daily chart shows a descending triangle pattern, with potential for a bullish reversal if the price breaks above trendline resistance.
