Is there a serious crash coming?

The FTX token (FTT) has surged more than 30% in recent days, raising concerns about the possibility of a major crash. After an impressive 10-day high that saw prices double, this sudden drop was due to traders’ recent gains.

From September 29th to October 8th, FTX tokens rose from $1.40 to $2.80, a 100% increase. However, by October 10, the price fell to $2.24 and within an hour the token fell another 1% to $2.24. The 24-hour trading volume is still above $60.42 million, indicating active trading during this volatile period.

This sharp decline could cause investors to sell off after the token breaks through key resistance. Many traders recorded profits following the announcement of FTX lenders’ recent payment plans, which initially boosted the token sharply and consequently sent the token’s price sharply lower.

Technically, the FTX token price pattern refers to a flag pattern, usually a signal of sustained price movement, either bullish or bearish. The Relative Strength Index (RSI) has fallen from overbought levels, indicating a shift to neutral territory. Additionally, the simple moving average (SMA) is nearing a bearish crossover, which could indicate further losses.

Despite a recent decline, the FTX token still recorded a 6% increase over the past week and a 74% gain over the past month. However, the question remains: will the financial transaction tax recover? If the bullish sentiment returns, the token could retest the resistance at $2.65 and reach $3.25. Worse, a prolonged sell-off could push the token towards critical support at $2.10.

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