- FTX token has a bullish bias on the daily timeframe.
- The negative readings on the CMF showed that an uptrend might be unsustainable.
As a seasoned analyst with a knack for deciphering market movements and an eye for spotting red flags, I must admit that the FTX Token (FTT) situation presents a peculiar conundrum. While the daily timeframe shows a bullish bias, the underlying fundamentals suggest otherwise.
Over the past few weeks, there has been increased price fluctuations for the FTX Token (FTT). In October, the U.S. administration gave the green light to the restructuring proposals for the bankrupt cryptocurrency exchange, FTX.
The plan sought to reimburse 119% of the claimed value to about 98% of the former FTX users.
There has been talk lately about the possibility of a presidential pardon from Joe Biden for the embattled CEO of the trading platform, Bankman-Fried.
The court-ordered bankruptcy hearing is scheduled for January 2025, which could potentially increase the turbulence in the FTT token market.
The rumors were sparked by a post on X by user Wall Street Mav. Polymarket odds saw a 9% surge in the odds of a pardon after Elon Musk’s comment.
This also explained the short-term bullish surge behind the FTX token.
FTT tests the $3.5 resistance again
From mid-June to mid-July, the exchange token seemed to establish a base near the $1 value. Then, it gradually climbed upward starting from late September onwards.
Starting from November, the market has been resuming its upward trend. By November 21st, a bullish pattern reappeared on the daily chart, indicating a positive market structure.
Over the last month, the structure has continued to show strength in the daily chart, and the Relative Strength Index (RSI) has consistently remained above the 50-neutral mark. This trend supports the notion that the token’s bullish momentum is robust.
For much of the last year, the Consistent Margin Factor (CMF) has remained persistently below -0.05. This suggests that the majority of capital flows have not been regularly flowing into the system, casting doubt on the recent two-month rally’s legitimacy.
Is your portfolio green? Check the FTX Token Profit Calculator
The CoinMarketCap page for FTX Token is emblazoned with a warning,
The court process for FTX’s bankruptcy is currently taking place. Since the FTT token has lost its purpose, it could potentially be sold off to repay creditors. Exercise extreme care in your actions.
Consequently, investors should avoid this token, while traders must stay vigilant regarding any news updates that may negatively impact their trades.
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2024-12-27 04:07