FTX Token Down 31% in 2 Days: Is a Major Crash Coming?

As an analyst with over two decades of experience in the volatile world of cryptocurrencies, I must say that the FTX Token (FTT) situation has my eyebrows raised. The sudden surge and subsequent drop are reminiscent of a rollercoaster ride, albeit one that comes with a hefty dose of unpredictability.


Over the last several days, the FTX Token (FTT) has experienced a jump exceeding 30%, leading to speculation about potential market collapse. Following a remarkable 10-day peak where its price doubled, this steep decline appears to be fueled by active trading activity.

Between September 29 and October 8, FTX tokens experienced a significant surge, rising from $1.40 to $2.80 – that’s a 100% increase. However, by October 10, the price dipped to $2.24, and in just an hour, it dropped another 1% to $2.23. Despite this volatility, the 24-hour trading volume remains robust at over $60.42 million, suggesting that the market is still active during this turbulent period.

FTX Token Down 31% in 2 Days: Is a Major Crash Coming?

The sudden drop in value might lead investors to unload their tokens once it surpasses a significant barrier. After the news about the new repayment strategies by FTX creditors was released, many traders saw profits due to the subsequent sharp increase in the token’s price, only for it to fall sharply afterward.

Essentially, the pattern in FTX token prices resembles a flag formation, often signaling a continuation of price movement, be it bullish or bearish. Notably, the Relative Strength Index (RSI) has dropped below overbought levels, suggesting a transition to neutral territory. Moreover, the simple moving average (SMA) is getting close to a bearish cross-over, which might hint at potential future losses.

Although there’s been a temporary drop, the FTX token has managed a 6% rise over the last week and a significant 74% growth in the past month. The key issue is whether FTT will bounce back. If optimism resurfaces, the token might challenge resistance at $2.65 and potentially reach $3.25. Conversely, if selling persists, it could approach crucial support at $2.10.

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2024-10-10 09:56