FTM/USDT

FTM moved a huge 50% in the last few days, increasing from $0.16 to $0.25.

It is currently overheated over higher times and may consolidate in the $0.235 – $0.25 area for some time to reset its indicators.

I feel that FTM has more possibilities. It could break out of the falling wedge structure that has been trading (since June) in the next few days and test the $0.30 resistance area and even the $0.40 resistance area.

S&P 500 / VIX comparison

Look at the correlation between the S&P500 futures and the VIX chart (the S&P500 volatility index).

The S&P 500 has yet to break out of the downtrend line. It is now against it. Meanwhile, the VIX has reached critical levels.

Note that whenever the VIX is anywhere between 16 and 20, it jumps, as indicated by the yellow circle. And if you look at how the yellow circles line up vertically with the S&P 500 price action above, you can see that the expanding VIX marks all major S&P 500 highs.

In summary, with the S&P 500 heading for resistance and the VIX looking poised for a recovery, keep your guard up as another big move could be on the horizon.

US Dollar Currency Index

DXY has been falling since mid-October, dropping from around 115 to 104.60, causing a massive rally in the stock market. Unfortunately, the same cannot be said for the crypto market due to the FTX breakdown.

As the DXY higher timeframe indicator is not oversold yet, we believe it may continue to drop and test 104 (support) and 102.50 (daily support as of May 2021).

The market will be very bullish if DXY falls further in the coming weeks. However, given that it is trading within a descending channel structure, there is a 69% chance that it will eventually fall apart and exit. And it does nothing for the market.

ETH/USDT

Ethereum had a good week as the price broke through the $1,220 resistance level and posted a 6.5% gain. This bullish momentum is likely to continue if buyers can turn previous resistance into support.

Despite good buying volumes during the breakout, he is likely to test $1,220 now. If the bulls successfully defend, Ethereum’s next target is $1,365. Momentum favors buyers at the moment, but will face strong resistance from sellers given the overall market remains bearish. Going forward, the best thing that could happen to Ethereum is to regain the price level from early November (just before the FTX collapse) when it was trading around $1,600. That will restore confidence in the market and the bulls may decide to challenge even the $1,725 ​​resistance level.