FTX token price analysis: Is FTT still bearish?

Avatar Robert Mayne 2 years ago

The FTX token price performs well in this “crypto winter”, compared to other cryptocurrencies. For example, in the last day its price had an increase of about 7.5%.

The all-time high of the FTT price, is located at 85.74 USDT (September 08, 2021), according to Binance. While the annual minimum is 21.03 USDT, on June 14, 2022.

Since that mentioned minimum, the value of FTT has progressively recovered to the monthly maximum of $32.64. Currently, the FTX token (the popular cryptocurrency exchange), seems consolidated around $26-27.

On the daily chart we can see that the two largest red candles (August 19 and 26) form a pattern resembling the “double floor”. Such a pattern is taken with a change from a downtrend to an uptrend. In June, when the FTX token price bottomed out, we saw a similar movement.

On the other hand, we also note that the price is moving below the 20, 50 and 100 EMA. An evidence that, despite the recovery, the trend is still bearish. Its price really needs to break the resistance of $33 to continue with said mentioned recovery. While a return to $21, would mean the continuity of the downtrend marked by the crypto winter.

It is worth noting that the FTX exchange is a platform with a daily transaction volume of more than $10 billion. In recent years, it had a big boom in the market, this also explains the success of its FTT token.

FTX boom backs FTT

FTX is a platform that registered a growth above 1000% in 2021, according to its disclosed internal documents. A breakdown of its revenue reveals that this exchange earned $388 million in 2021, compared to $17 million in 2020. That is, an increase of 2182.35% in revenue. All this in just two years of existence of this platform and with the help of clients, sponsorships and associations.

Although it remains to reveal the performance of said revenues during the most bearish months of the crypto winter (and which have probably been reduced), the great boom of FTX provides great confidence to investors when it comes to betting on FTT.

It is important to mention that FTT is an extremely important element within the FTX services: The holders of said token have endless trading opportunities, for which, the interest in it is quite strong.

It should also be noted the role that FTX has played in the rescue of cryptocurrency platforms this crypto winter, as was the case with Blockfi. In addition to a series of acquisitions made throughout this year. Although in recent days Sam Bankman-Fried, CEO of FTX, has denied the acquisition of the Huobi exchange, as rumored.

FTX Token and the recommendations to consider

The first quarter of 2022 brought with it profits of $270 million for FTX. But, despite such an optimistic figure, it is likely that after that the profits were reduced at the lows of the cryptocurrency market.

Undoubtedly, the FTX price is attractive for investors who have short-medium term strategies. Since even its price denotes more strength than BTC and ETH. However, long-term investors should keep in mind that centralized exchanges also bring with them some risks, such as: regulations, bad performances, failures, etc.

We can summarize the above in that the integrity of centralized projects, as well as their value, lies in the performance of a few people beyond the market value and the utility they provide.

What should not be ignored is that FTX has acted and grown phenomenally and has very good projections, which drives the FTX Token price.

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