FTX-FTT Analysis

After a week marked by market instability, we have seen how the two assets with the largest market capitalization in the crypto, BTC and ETH have made new lows and continued with the downward trend. They have been falling since November 2021.

This past Friday, the market was shaken by liquidations, which together with other news (mining in Russia, possible conflict with Ukraine), led us to see a break of supports, and an increase in volatility, which our colleague Adrian Sanchez pointed out in his weekly analysis of an on chain data. It was necessary for the price to get out of the range in which it was immersed.

But while we were waiting for that increase in volatility, we continued to work with other assets in the market that show a better technical situation, or at least a wider trading range, as is the case of FTT, the native token of the FTX Exchange.

FTX is a crypto derivatives trading platform designed by professionals with confirmed industry experience.

Its FTT token grew by 40% in recent weeks, after creating a price structure that allowed us to anticipate the movement which we will analyze below.

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As we can see in the chart, there is an uptrend and a secondary downtrend formed since its ATH at $86 (historical high) in September 2021.

If we pay attention to the last period, we see how since the beginning of December lower and lower lows price is occurring, but in the indicators RSI and MACD, these lows are generated in an upward way, creating that bullish divergence between indicators and price.

If we look at the social volume of FTX, we see how it begins to increase from January 10 with a clear component of euphoria and generating higher highs, both in social volume and price.

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This increase in social volume, together with the bullish divergences of the indicators and price support at the trend line, alerted us to the possible upward movement, which occurred in the following days and took the price from $35 to $50, where the support was found and was broken in early December and has acted as resistance.

We can consider this resistance as a strong zone, since the 200 MM and the downtrend line is also found in that price zone.

Downward movement on Friday also affected FTT and caused the creation of a new low that continues to validate this downtrend, so we will have to be very careful with the evolution of the market. As long as we do not see higher highs, the downtrend will remain in force.