In the cryptocurrency market, $FTX Token ($FTT ) and Terra Classic ($LUNC ) are showing signs of recovery after experiencing significant declines in recent weeks. The downturn was primarily influenced by the launch of Deepseek and newly introduced tariff policies by former U.S. President Donald Trump, which contributed to a broader bearish sentiment across the market.
However, both tokens are rebounding, with FTT recording a 4% gain, likely driven by the upcoming creditor repayments scheduled to commence on February 18, 2025. Meanwhile, LUNC has also returned to positive territory following a 60-day decline of 42%, while FTT saw a 26% drop over the same period.
FTX Token (FTT) Analysis
The weekly chart for FTX Token (FTT) suggests that the asset has been consolidating within a descending triangle pattern. The recent downtrend, which began on December 2, followed a rejection at the $4.40 upper resistance level, leading to a sharp price correction.
According to technical indicators, FTT found support in the critical $1.90–$2.10 range, aligning with the lower boundary of the triangle. As of now, the token is trading around $2.07, holding steady at this historically significant level.
Moreover, the 50-day simple moving average (SMA) is acting as a support level. If buying momentum increases, FTT could attempt to retest the upper trendline. A successful breakout above this resistance could propel the price toward the $3.50–$4.00 range in the coming weeks.
Terra Classic (LUNC) Analysis
Similarly, Terra Classic (LUNC) has been trading within a descending triangle, mirroring FTT’s price action. The token’s recent downtrend, which began on December 2, was triggered by a rejection at the $0.00018 upper resistance level.
This decline brought LUNC to a major support zone at $0.000046. However, the asset has demonstrated resilience at this level and is now trading around $0.000075. Historically, this zone has served as a strong rebound area. If this trend continues, LUNC could soon challenge its 50-day SMA as a critical resistance level.
A breakout above this moving average would pave the way for a retest of the descending trendline, potentially driving LUNC toward the $0.00013 range in the coming weeks. Additionally, the Moving Average Convergence Divergence (MACD) indicator is showing early signs of a bullish crossover, suggesting that positive momentum may be building.
Is a Trend Reversal Imminent?
Both FTT and LUNC are exhibiting strength at their respective support levels, indicating the potential for a trend reversal. However, their price trajectories will largely depend on broader market conditions, particularly Ethereum’s (ETH) performance and Bitcoin’s (BTC) dominance.
If ETH continues its recovery and BTC dominance declines further, altcoins like FTT and LUNC could gain additional upward momentum. Nevertheless, given the inherent volatility of these assets, traders should closely monitor key resistance levels, trading volume, and overall market sentiment before making any investment decisions.