https://ift.tt/nZ1B3sb Divergences Could Precede Upward Movement for FTX Token (FTT)

FTX Token (FTT) has been surging afterward Jan 24 and is showing several bullish signs. After all, there is a stark contrast between the price action and technical indicator readings.

FTT has been decreasing afterward touching an all-time strong price of $87.3 on Sept 7. After all, the decrease stopped back when FTT jumped at the $35 horizontal support range on Jan 24. 

Despite the leap, technical indicators are showing mixed signs. On the bullish side, both the RSI and MACD have genecostd very important hidden bullish divergences (green line). Such divergences are a high sign of trend continuation. Since the underlying trend is bullish, a continuation of this ascending development would be likely. 

Nonetheless, both indicators are likewise weakening, which is a bearish sign.

Cryptocurrency trader @CryptoPoseidonn tweeted a chart of FTT, stating which on the occasion that the cost manages to progress above $63, a new all-time excessive would be expected.

Due to the mixed readings from the weekly time-frame, a look at fafterwards time-frames is required in order to determine granted that FTT will indeed increase towards a new all-time high.

FTT breaks out

The daily chart shows that FTT has broken out from a decreasing resistance line that had been retained afterward the aforementioned all-time high. 

Afterwards, it verwith the condition thatied this line as support on Feb 24 (green icon). The cost has been moving ascendings afterward.

Yet, the daily time-frame further fails to versupposing thaty the direction of the trend, afterward technical indicators and the cost action give contrasting readings. 

While the FTT cost action is bullish, technical indicators are bearish. Both the RSI and MACD are tumbling, the former being beflat 50 in the time the latter negative. 

After all, both indicators are very close to their respective bullish thresholds. Therefore, a slight cost increase would cause both of them to turn bullish.

If the ascending movementment lasts, the main resistance range would be between $59.5 and $66.2, created by the 0.5-0.618 Fib retracement resistance levels.

The six-hour time-frame shows that FTT is dealing inside a decreasing parallel channel. This is usually a corrective pattern, meaning that a breakout from it would be the most likely scenario. 

Nonetheless, similarly to both the weekly and daily time-frame, technical indicators are neutral/bearish, providing some ambiguity as to the direction of the trend.

Wave count analysis

Finally, the wave count supports the possibility that the cost will increase. The FTT cost decrease resembles an A-B-C corrective structure, in that waves A:C had a nearly 1:1 ratio.

Also, the atoplap between the Feb 2022 high and Sept 2021 bottoms (red line) suggests which the decrease was corrective.

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