The FTX Token FTT has dropped from its Tuesday opening price of $22.2 to its low of $2 on Thursday morning, a drop of -90.93%. As of this writing, it can be purchased for $3.29 and has begun a slight recovery.
What happened to FTX and where it will go from here is still a matter of conjecture. However, Binance has decided not to intervene, leaving many investors wondering if the FTT token is truly headed to zero.
FTX Token (FTT) Price Analysis
Since FTT token hit a record high of $85.78 on September 8 of 2021, the token’s value has been falling. When the market entered a bear phase in November, the token’s price dropped along with it.
When the price hit $21.64 on June 18 of this year, it was a sign that it had found support and was able to establish a horizontal range within which to consolidate. This low was seen as potentially bottoming out on June 21, 2021, which was the next lowest point.
On June 18th, the market appeared to bottom out, and a new uptrend was attempted. The attempt was unsuccessful, and the price of oil reached a new low of $32.1 on August 14th.
There are warning signs of difficulty and intense selling pressure as this lower high has not even touched the significant descending trendline that dates back to the all-time high.
Together, the $21 horizontal zone and the descending resistance trendline formed flat-topped triangles in the direction of the downtrend. This suggested that the correction was nearing its end after retesting the June 18 low for a second time.
The 22nd of September saw the horizontal level hold and a subsequent rebound. On November 1st, at $26.5, the price made another attempt to break out to the upside, but was once again rejected by the descending trendline. A confluence of the descending resistance line and the horizontal range’s upper resistance was at this point.
A decline in fortunes was to be anticipated, but not one carrying this much force. We have no idea where the bottom might be now that the price is being traded below every historical data reference, and we have to wonder if it could go to zero.
Where Is The Bottom?
If we zoom out to a weekly view, we can see that there are three additional areas of interest for the price of FTT to reach. Since the weekly close is approaching, it is crucial that the price of the FTT token stays above $4.6.
The $2.6 area represents the next potential target if this level is not maintained. These estimates are, however, quite imprecise. Additionally, considering the fact that they were formed in 2020 it is still unclear whether they are still relevant.
It’s intriguing to see the price rebound to where it was in November 2020, before the pump. This is yet another reason why it’s crucial to keep the weekly close price above $4.
Unfortunately, if this level doesn’t hold and we don’t see the weekly candle close above it, further downside is expected.
When it first hit the market on July 29, 2019, FTT cost $1.7. For the time being, this is all we can consider to be the bottom. That’s confusing; could you explain it?
There can never be a zero-value token because even if only one person or organization has it, that person or organization would control the token. And despite the changes, Alameda research and the FTX exchange remain significant players.
If the price drops to zero, the token will be permanently removed from circulation by closing the corresponding exchange. However, if we were only interested in conducting technical analysis, this wouldn’t matter because we wouldn’t be looking at the chart.
Conclusion
The price of FTT has dropped significantly, but it has now passed several significant horizontal levels. The $2.60 area is the most notable, but the fact that it has remained above $4 is even more significant. A potential bottom may be indicated if the weekly candle closes above it.
Of course, things don’t look good if we’ve already witnessed the price drop to where it began on the wick.
Unfortunately for Binance’s investors, the exchange may soon close down without providing a way to withdraw their funds if they do not abandon their LOI. In such conditions, FTT could easily be rendered useless and end up at $0.
Disclaimer: This isn’t financial advice; it’s just for education. Crypted Crypto can’t guarantee its accuracy. Every investment and trade carries some risk, so always do your own research. Invest only what you can afford to lose.
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