FTX Token Drops 31% In 2 Days, Major Crash Incoming For FTT?

Amid increased market volatility, the 10-day dream run of the FTT cryptocurrency comes to a halt. Following the announcement of the repayment plan to its creditors, the FTT price surged over 100% within a short period.

However, with the altcoin surpassing its major resistance level, many investors are booking their profits. Is Alameda Research’s FTX token on the verge of a total collapse? Or will it make a comeback and record a new yearly high this month? 

FTT Price Forms A Flag Pattern!

Amid increased price volatility in the crypto market, the FTX crypto price has dropped 3.89% in the past day with a trading volume of $103.09 million. Moreover, it has dropped over 30% within the past 50 hours, indicating a strong bearish reversal for it in the market.

Notably, the FTX token has jumped ~6% over the past week and 74.07% during the past month. This highlights a long-term bullish sentiment for the altcoin. With a market capitalization of $744.55 million, it has secured the 86th position among the top 100 cryptocurrencies.

FTX Price Technical Sentiments

The Relative Strength Index (RSI) records a sharp decline toward its neutral point from its overbought range in the 1D time frame. Moreover, with its average trendline recording a bearish convergence, the FTT price hints at a negative outlook this week.

Further, the SMA indicator is on the path of recording a negative crossover in the FTX token price chart. This suggests a weak bullish sentiment for the altcoin in the market.

Will The FTT Token Recover?

If a bullish reversal occurs, the FTX crypto will retest its resistance level of $2.6505. Further, if the bullish sentiment intensifies, this could result in it heading toward its upper resistance level of $3.255 during the upcoming weeks.

On the contrary, if the bears continue dominating the crypto space, the FTT coin could continue losing momentum and plunge toward its important support level of $2.1085 this month.
Also, read our FTX Price Prediction for potential price targets