Cryptocurrency

FTT: Unraveling implications of recent drawdowns on technicals

FTT’s bearish break under the $28.7-level led the alt to retest and finally breach the $25-support (now instant resistance). The recent patterned break took a plunge under the seven-week trendline resistance (white, dashed) on the 4-hour timeframe.

A compelling shut under the $25-level may expose FTT towards a draw back earlier than any bullish revival probabilities.

Due to the comparatively excessive correlation with Bitcoin alongside the broader sentiment, the altcoin may see pattern invalidations. At press time, FTT was buying and selling at $25.127, down by 8.12% within the final 24 hours.

FTT 4-hour Chart

Source: TradingView, FTT/USD

From a near-term outlook, FTT’s rising wedge breakdown has pulled the alt under its 20 EMA (pink) and the 50 EMA (cyan). Furthermore, a convincing bearish crossover of these EMAs may impair the near-term shopping for efforts. 

A detailed under the $25-level may help near-term promoting efforts to check the $23-$24 vary within the coming periods. However, a right away bounce-back from the $25-zone may delay the bearish tendencies. In this case, the consumers would goal to check the 20 EMA close to $26 earlier than a reversal.  

FTT Daily Chart

1656574850 319 FTT Unraveling implications of recent drawdowns on technicals

Source: TradingView, FTT/USD

In this timeframe, FTT noticed a robust reversal from the 38.2% stage. sustained shut under the 23.6% stage may propel a low volatility section within the $24-$25 vary within the coming days. Thus, the potential shorting targets would stay within the $24-zone. Also, with growing buying and selling volumes, the 24-hour losses depicted a moderately sturdy bear transfer.

FTT Unraveling implications of recent drawdowns on technicals

Source: TradingView, FTT/USD

The Relative Strength Index (RSI) plunged under the midline after barely sustaining itself above the 50-mark. Looking at its south-looking tendencies, the consumers nonetheless had an extended method to alter the broader outlook of their favor.

Also, the CMF dipped under the zero-line and reaffirmed the bearish power. But any comebacks alongside its trendline assist can help near-term restoration efforts.

Conclusion  

Given the break under the $25-level on the H4 alongside the patterned break and bearish indications on the each day timeframe, FTT may take a look at the $23-$24 vary. The targets would stay the identical as talked about above.

Any bearish invalidations ought to possible discover a rebounding area within the $26-zone. Also, traders/merchants should preserve a detailed eye on Bitcoin’s motion as FTT shares a 58% 30-day correlation with the king coin.

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