FTT’s Struggle to Break Above $5 Signals Potential Market Top

FTX Token (FTT) suffered a major blow over the past day of trading. At press time, the cryptocurrency market tracking website CoinMarketCap indicated that the altcoin plummeted more than 16%. This dragged the altcoin’s price down to $4.31.

The altcoin also recorded a decrease in its 24-hour trading volume. CoinMarketCap data showed that FTT’s volume was down 19.59% – bringing it to $227.843 million.

FTT was, however, able to reach a high of $5.17 during the last trading session. Since then, it has undergone a strong correction to trade at its current level. Consequently, the cryptocurrency was trading closer to its daily low of $4.25.

Daily chart for FTT/USDT (Source: TradingView)

An ascending triangle has emerged on the daily chart for FTT/USDT. This is generally seen as a bullish chart pattern and suggests that the altcoin’s price may soon flip the $5 resistance level into support. Traders and investors will want to note, however, that FTT was rejected by this key price point over the past 48 hours.

As a result, the cryptocurrency is at risk of retesting the support level at $2.6815 in the coming week. Continued sell pressure at this significant price point could lead to FTT falling to as low as $1.7740 in the short term.

Technical indicators on FTT’s daily chart suggested that the cryptocurrency’s price has reached a peak. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators were flagging bearish at press time.

Buyers weakened against sellers throughout the past couple of days, which was evident by the RSI line that had crossed below the RSI Simple Moving Average (SMA) line. The MACD line was also attempting to cross below the MACD Signal line. This is generally seen as an indication of a continuation of the cryptocurrency’s negative trend.