FTT Price Loses Major Support Amid Panic Selling; What’s Next?

On November 8th Tuesday, the crypto market tumbles along with the rapid downfall in FTX token(FTT). This aggressive downfall is backed by FUD surrounding the FTX crypto exchange causing significant losses even in major altcoins. Amid the negative sentiment, the FTT price has witnessed huge losses, and given a massive breakdown from the multi-month support of $22, will this breakdown lead to further losses?

Key points

• A lower price rejection attached to the daily candle indicates demand pressure at the $15 psychological mark.
• The oversold RSI signal the need for a bullish pullback to stabilize prices
• The intraday trading volume in the FTT token is $1.4 Billion, indicating a % gain.

Source- Tradingview

The FTX token(FTT) showcased a range-bound movement over the past five months, restricting the price spread between the $32.5 and the $22 mark. Amid this consolidation, the altcoin retested the $22 bottom support several times, suggesting a high accumulation zone for coin holders.

However, with the ongoing liquidation crisis in the FTX exchange, the token price has witnessed a massive downfall since last week. Thus, the altcoin tumbled 35% from the recent swing high of $26 and reached its current trading price of $17. 

Nevertheless, this rapid selling seems driven by market participants’ fears that FTT price may suffer the same fate as LUNA. Moreover, the Binance CEO CZ’s recent announcement for liquidating its remaining FTX (FTT) token holding in a few coming months intensified the bearish sentiment.

Though in a recent tweet, the FTX chief Sam Bankman-Fried assured that FTX is fine with its operation, the prices plunged 22% on an intraday level. The massive red candle breached the multimonth support of $22.

In case no other unfavorable news strikes the FTX token, the market value should witness a minor pullback to retest the breached support. Therefore, The bullish reversal will likely revisit the $20 or $22 levels to replenish the bearish momentum. 

If the price sustained below the aforementioned levels, the downward spiral could continue to $15 or $11.

Technical indicator

Relative Strength Index: the daily-RSI slope nosedived into the oversold region accentuates the selling is quite aggressive for the given time; thus, a minor pullback is needed.

EMAs: the coin price trading below the crucial EMAs(20, 50, 100, and 200) gives an extra edge for coin sellers to extend the ongoing downfall.

FTX Token Price Intraday Levels

• Spot rate: $17.9
• Trend: Bearish
• Volatility: Medium
• Resistance levels- $20 and $22
• Support levels- $15 and $11