FTX investors should watch out for FTT touching $23-$25 range over the weekend

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

The FTX exchange token FTT has been in a downtrend since March. In May, the price formed a descending channel, and a breakout upward has not been seen yet. It is the fourth largest token by market capitalization, and the past week of trading took out a good chunk of said marketcap. The market structure was bearish, although a relatively low-risk buying opportunity could soon present itself.

Source: FTT/USDT on TradingView

The descending channel (white) saw what appeared to be a bullish breakout in the third week of June. But the $29 resistance level stood firm. In the months since then, the $29 and $32 levels of resistance have posed stiff resistance to the price movement.

A set of Fibonacci retracement levels (yellow) were plotted based on FTT’s move from $23.25 to $32.64. In mid-August, the 23.6% retracement level was broken as support. The plunge that followed saw both the 38.2% and 50% retracement levels have both acted as resistance.

In July, the $23.6-$24.5 region had acted as a support zone. At the time of writing, the price was at the same belt of support once again. The Relative Strength Index (RSI) showed a value of 34, to highlight strong bearish momentum. The On-Balance Volume (OBV) was also in a slight downtrend from the beginning of August, which showed the sellers possessed a slight advantage.

Source: FTT/USDT on TradingView

On the two-hour chart, two key levels of support were highlighted in white. The one at $25.13 has served as a solid support level since late August, but it gave way a few days ago to selling pressure. The Awesome Oscillator (AO) and RSI were