1. Demand Zone: A Catalyst for Price Action
At the core of FTT’s recent surge lies a crucial element—the demand zone. This specific price range, spanning from $1.9305 to $1.7289, has consistently attracted buying pressure. Interestingly, FTT has respected this zone, resulting in a substantial 15.36% price increase. When demand zones align with technical levels, they act as springboards for upward movement. Traders closely monitoring FTT should keep a keen eye on this critical support area.
2. Targeting Resistance Levels
As FTT rides this bullish wave, it sets its sights on higher ground. The immediate target is the upper resistance level at $3.4343. However, prudent traders should also consider the minor resistance at $2.3330, just above the current price. Breaking through these barriers will be pivotal for sustaining upward momentum.
3. Active Buyers and Key Metrics
Let’s dig deeper into the active participation of buyers in the FTT market. Coinglass, a reliable source for crypto metrics, sheds light on two critical indicators:
- Funding Rate: Currently standing at a positive 0.0449%, the funding rate reveals a bullish sentiment. When futures contract prices exceed spot prices, long traders pay fees to short traders. This dynamic suggests confidence in FTT’s future prospects.
- Open Interest: The growing open interest, now at $1.1 million, signals increased activity. More long contracts are being initiated, and existing positions are being maintained. This trend reinforces the notion that FTT’s rally is not a fleeting phenomenon.
4. Proceed with Caution: A/D Indicator and Support Levels
While optimism abounds, investors must exercise caution. The Accumulation/Distribution (A/D) indicator—a powerful tool for assessing buying and selling pressure—approaches a significant resistance trendline. If FTT’s price rallies to this level (possibly coinciding with the minor resistance at $2.3330), a minor drawdown to the $2.0486 support could occur. Market sentiment will play a pivotal role in maintaining this support.
