The cryptocurrency market continues to ride a wave of bullish momentum, with several major altcoins gaining traction as Bitcoin's ($BTC ) dominance slips to 55%, down from its recent high of 61.53%. Amid this shift, Terra ($LUNA ) and FTX Token ($FTT ) have captured attention with notable price surges, positioning them as strong candidates for major breakouts.
Terra (LUNA)
Terra (LUNA) has been trading within a falling wedge pattern for nearly a year. As of today, the token has rallied by over 23%, currently priced at $0.74, just below its descending resistance line. A confirmed breakout above this resistance, particularly if LUNA surpasses the $0.8448 mark, could trigger a significant rally.
Key targets following such a breakout include resistance levels at $1.38 and $1.54, which represent a potential upside of 102% from current levels. Sustained bullish momentum could propel LUNA further to $2.55, signaling a full recovery from earlier lows.
However, traders should remain cautious as LUNA's relative strength index (RSI) currently stands at 84.96, indicating an overbought condition. This could suggest the potential for a short-term correction before the next upward leg.
FTX Token (FTT)
FTX Token (FTT) has been consolidating within a descending channel over the past year and is trading at $2.73 today. The token is approaching its descending resistance line, with a critical breakout level at $3.006. A confirmed breakout at this level could pave the way for a strong rally.
Immediate resistance lies at $3.45, representing a potential gain of 27% from current levels. If momentum continues to build, FTT could target $6.04, delivering an impressive 122% upside and marking a significant bullish reversal from its previous lows.
FTT's RSI currently reads 72.72, signaling strong buying pressure but also highlighting a potential overbought condition in the short term.
Outlook and Expectations
Both LUNA and FTT are exhibiting early signs of bullish momentum, bolstered by the recent decline in Bitcoin's dominance. These conditions have created a favorable environment for altcoins, positioning LUNA and FTT as potential leaders in the next market surge.
Key resistance levels will be critical in determining whether these tokens can sustain their upward trajectories. Over the coming weeks, traders should monitor price action closely for confirmation of breakouts and assess the sustainability of the current momentum.
While the technical outlook is promising, traders should also remain vigilant about overbought indicators and potential corrections as part of the broader trend.
