The year 2022 was marked by a series of collapses in the crypto world, starting with the Terra ecosystem and extending to the lesser-known FTX exchange. These incidents resulted in massive losses amounting to billions of dollars within the crypto markets. However, there is some hope for investors as the platform has announced plans to repay them, with the process set to commence on February 19, 2025. This raises the question of whether this influx of liquidity will impact the crypto markets.
Bitcoin and Ethereum have been grappling with a severe liquidity crunch, with capital inflow plummeting by over 30%. Consequently, prices have been range-bound, struggling to break through key resistance levels. It is anticipated that this liquidity will flow into these top two tokens, as there has been a notable shift in sentiment from meme coins to fundamentally strong assets. This shift is likely to lead to increased market volatility in the coming days, potentially influencing market trends significantly.
As the repayment date draws near, the FTT price has started to show signs of momentum. A surge in trading volume, from $22 million to $67 million, propelled the FTT price from $2.05 to $2.39 within a short period. Although a correction is currently underway, the price remains under bullish pressure, with expectations of a significant influx of liquidity into FTT.
The FTT price has managed to hold above a critical support zone between $1.91 and $1.84, establishing a crucial range. It is currently caught between the 50-day and 200-day moving averages, which are acting as strong resistance and support levels. Additionally, these moving averages are on track for a bearish crossover, indicating a potential downtrend. Despite a bearish divergence in the RSI, an ascending trend line is anticipated to provide solid support.
If the FTT price can maintain its position within the parabolic curve, there is a possibility of forming an Adam and Eve pattern. This could potentially drive the price towards the neckline at around $4, triggering a new uptrend if the bulls manage to breach the resistance level. While the likelihood of a bearish scenario is minimal, any downward pressure may find support within the established zone, leading to a strong rebound within the pattern.