Analyzing FTX Token’s Surge: Factors and Forecasts in the Cryptocurrency Market

Analyzing FTX Token’s Surge: Factors and Forecasts in the Cryptocurrency Market

Crypto News – The FTX Token (FTT) has experienced a remarkable surge, soaring by 276% over the past week, as per CoinMarketCap data. This rise aligns with a broader uptick in altcoin values since October, with a notable spike in demand for FTT around November 21, evident from the FTT/USD two-hour chart.

Navigating Binance’s Challenges

This surge in FTT’s demand seems to be linked to the recent U.S. Department of Justice sanctions imposed on Binance. FTT’s positive response to these developments could be rooted in the history between the two exchanges. Notably, Binance, once led by CZ, played a significant role in the 2022 downfall of FTX, then its main rival.

Mirroring its own crash period, Binance is currently facing a significant withdrawal surge, as reported by Coin Edition.

Key Price Movements

On November 21, FTT found strong buying support at $2.94, setting the stage for its upward trajectory. This momentum propelled the token’s value to a peak of $4.76 by November 23.

However, a wave of profit-taking followed, with prices fluctuating between the high of $4.76 and a low of $4.00 on November 24. Despite this, the last 24 hours witnessed a 3.78% price hike, with FTT trading at $4.37 at the time of writing.

Technical Indicators and Future Outlook

The resurgence in buying momentum is partly attributed to the Relative Strength Index (RSI), which, after dipping to 46.43 on November 24, rebounded to 54.78. Should this upward trend in RSI continue, FTT might retest the $4.50 mark, provided there’s no significant selling pressure.

Furthermore, the Moving Average Convergence Divergence (MACD) hints at potential for further growth, having recently shifted into a positive zone.

Another bullish sign is the potential crossover of the 12-day EMA (blue) over the 26-day EMA (orange), which could further solidify FTT’s upward momentum. Should this occur, FTT might aim to revisit the $4.76 mark.

Currently, FTT requires more buying pressure to target $4.76, as suggested by the Exponential Moving Average (EMA) trends. At present, the 9 EMA (blue) has overtaken the 20 EMA (yellow), typically indicating bullish sentiment.

However, the proximity of the 20 EMA to the 9 EMA casts some uncertainty on this bullish crossover.

If the 20 EMA aligns with the 9 EMA, FTT might see short-term consolidation around $4.30 to $4.35. Conversely, if the 9 EMA maintains its lead, further price increases could be on the horizon.