Journalist
Posted:
- FTX token has a bullish bias on the daily timeframe.
- The negative readings on the CMF showed that an uptrend might be unsustainable.
FTX Token [FTT] saw heightened volatility in recent weeks. The U.S. government had approved the reorganization plans of the defunct crypto exchange FTX in October.
The plan sought to reimburse 119% of the claimed value to about 98% of the former FTX users.
The was also speculation recently of a presidential pardon from Joe Biden for the disgraced CEO of the exchange, Bankman-Fried.
The bankruptcy proceedings are set for January 2025, further raising the chances of a volatile FTT token.
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
Source: FTT/USDT on TradingView
In June and July, the exchange token appeared to form a bottom around the $1 mark and began to slowly push higher in the second half of September.
Since November, this uptrend had begun to establish itself once again. A bullish market structure on the daily chart was regained on the 21st of November.
Since then, the structure has maintained bullishly on the 1-day timeframe. The RSI has also been above neutral 50 over the past month, giving more credit to the idea of bullish momentum behind the token.
Yet, its CMF has been below -0.05 consistently for the majority of the past year. This showed how the capital flows have not been consistently directed inward, making the rally of the past two months suspect.
Is your portfolio green? Check the FTX Token Profit Calculator
The CoinMarketCap page for FTX Token is emblazoned with a warning,
“The FTX bankruptcy proceedings are underway. The FTT token no longer has any use, and may be liquidated by the estate to pay creditors. Please proceed with caution.”
Therefore, investors need to steer clear of the token, while traders need to be wary of news developments that could hurt their positions.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
