The FTX Token price has pulled back sharply even after the parent company took a more active role in the cryptocurrencies market. FTT is trading at $25.70, which is slightly lower than this week’s high of $28.20. Its market cap has retreated to more than $3.4 billion.
FTX bails out BlockFi
FTX is one of the biggest companies in the blockchain industry. It is a cryptocurrency trading platform that mostly focuses on derivatives trading. According to CoinMarketCap, the company processed cryptocurrencies worth over $2.5 billion in the past 24 hours. Its American division handled coins worth over $200 million.
FTX has become relatively active during the ongoing cryptocurrency meltdown such that some analysts now believe that it is the unofficial crypto central bank.
For example, on Tuesday, the company announced that it had provided a $250 million loan to BlockFi, which is an embattled cryptocurrency lender. With cryptocurrency prices retreating, companies like Nexo, Celsius, and BlockFi have seen significant outflows. As a result, there are concerns that most of them will not survive. In a statement, Zach Prince, the CEO of BlockFi said:
“This agreement also unlocks future collaboration and innovation between BlockFi and FTX as we work to accelerate prosperity worldwide through crypto financial services.”
On the same day that FTX announced its investment in BlockFi, the company also said that it had acquired Embed Clearing. Embed is a firm that provides Whitelabel brokerage services and APIs to broker-dealers. The goal for FTX is to become a major player in the stock market through FTX Stocks.
And last week, the company announced that it had acquired Bitvo, a Canadian cryptocurrency exchange. Other recent acquisitions by FTX include LedgerX and Liquid Group. And notably, Sam Bankman-Fried, FTX’s founder, has become one of the biggest investors in Robinhood.
FTX Token price prediction
The 4H chart shows that the FTT token price has been in a strong bearish trend recently. It formed a double-bottom pattern at $20.96. In technical analysis, this pattern is usually a bullish sign. Now, the coin has pulled back and is at the upper chin of the double-top pattern.
It is also slightly above the 25-day and 50-day moving averages while the MACD has moved above the neutral point. Therefore, there is a likelihood that the FTX token will bounce back and retest this week’s high of $30. However, a drop below the support at $23 will invalidate the bullish view.
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