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Published 10 hours ago

The technical chart shows two contrary patterns are playing tug of war with the FTT/USDT pair. First, the U-shaped recovery indicates a rounding bottom pattern which is a bullish reversal pattern. However, on the flip side, the sets of new higher highs and lows follow a rising wedge pattern which encourages a significant downfall. Thus, which price pattern will the FTT price choose in the end?

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Key points

  • FTT price is facing supply pressure from the $32.7 resistance zone
  • The 20-and-100-day EMA nearing a bullish crossover attracts more buyers in the market
  • The intraday trading volume in the FTT token is $389.2 Million, indicating a 3.71% loss.

FTT/USDT ChartSource- Tradingview

The ongoing recovery began when the FTT/USDT pair bounced back from the $21.15 mark. Though the trend reversal is triggered with a rounding bottom pattern, the price action strictly responds to wedge pattern trendlines.

The first is a bullish reversal pattern that fuels the bullish trend and may extend its recovery above the overhead barrier of $32.7. This resistance breakout may intensify the buying momentum and drive the FTT price 6.63% higher to hit $34.85.

On a contrary note, the second pattern is a continuation pattern that bolsters the resumption of the prevailing downtrend. Thus, a support trendline has been maintaining the ongoing recovery in FTT price. Hence, a breakdown from this trendline will trigger the bearish pattern and may plummet the coin 12% lower to retest $13.

Anyhow, the coin price reasoning near the apex of the wedge pattern indicates a no-trading zone. Moreover, a successful breakout from either pattern will undermine the other pattern’s influence. 

Technical indicator

Relative Strength Index: a negative divergence in the RSI slope concerning the price action indicates weakness in bullish momentum. Thus, this divergence would bolster the wedge pattern theory.

ADX indicator: the sideways movement in the ADX slope indicates uncertainty among market participants about the existing trend.

b the 20-day EMA has flipped two dynamic support adding extra barriers against market sellers. Moreover, the 20-and-100-day EMAs are on the verge of bullish crossover may accelerate the bullish momentum.

  • Resistance level- $32.7 and $35
  • Support levels- $30 and $26.5

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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