FTX token (FTT/USD) slid 1.23% on Monday, marking a 12% decline in the past week. The decline comes amid a dampened sentiment around the token on the latest cryptocurrency news.
As CoinJournal reported, FTX was a victim of accelerated fund withdrawals. Over $451 million in stablecoins have been withdrawn from the crypto exchange in the past one week. That came after reports indicated that billions of dollars of Sam Bankman-Fried’s Alameda Research are tied up in FTT.
Besides, a tweet by Binance CEO Changpeng “CZ” Zhao on November 6 raised further concerns about FTT. CZ said that his company would relinquish its entire position in FTX tokens. The Binance CEO said the liquidation was post-exit risk management. The words of CZ highlighted a crypto exchange that could be in turmoil. “We gave support before, but we won’t pretend to make love after divorce.” CZ said the action was “learning from LUNA.” So, what went wrong?
As many crypto exchanges experienced liquidations earlier this year, FTX showed resilience. Sam Bankman-Fried was alongside Binance, bailing out struggling firms. However, the latest revelations are concerning and could accelerate the FTT sell-off going by the crypto’s price action.
FTT at a make-or-break level as sellers mount
Source – TradingView
On the technical outlook, FTT trades at a support zone of $22. Following the recent weaknesses, the token broke below the moving averages to the June lows. The RSI remains below the midpoint meaning that the sellers are more at the crucial support.
With weak momentum, FTT could break below to find a new low. Buyers could still try to force a recovery at the current support zone. A muscle up of the buyers and sellers could see the token consolidate at the support.
Should you buy the FTX token?
FTT remains vulnerable to a new yearly low amid weak sentiment and a bear market. Although there is a potential for recovery at the support, sellers are still active, and low prices are more likely.
Investors should wait before buying the token until the negative news is clear or positive developments happen.
Where to buy FTT
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600. Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
Bitfinex is a bitcoin exchange platform that provides advanced services for digital currency traders and liquidity providers.