The FTX token price has been in a strong sell-off in the past few days even after the company has made positive headlines. FTT is trading at $24.32, which is about 71% below its all-time high. Its market cap has dropped to more than $3.2 billion,
FTX is in a deal-making frenzy
According to Warren Buffett, investors should always be greedy when investors are fearful. It seems like Sam Bankman-Fried has taken this statement literally as stocks and cryptocurrency prices tumble. Sam, the founder of FTX, has slowly evolved to become the lender of last resort in the crypto industry.
In May, Bankman revealed that he had spent millions of dollars acquiring a large stake in Robinhood. In June, it was revealed that he was seriously considering making a bid for the entire company. His goal will be to become a leading player in both stocks and cryptocurrencies.
Meanwhile, it was also revealed that Celsius had approached FTX for an investment as the company unraveled. Sam refused to take a stake citing the company’s elevated risks.
This week, Sam Bankman revealed that he was acquiring BlockFi, a cryptocurrency lending company. He will pay just $25 million for a company that was once valued at over $4 billion. In 2021, there were rumors that PayPal was interested in the company. Sam was also approached to support Voyager, a leading exchange that recently suspended withdrawals.
Still, there are concerns about FTX as well. Analysts believe that the company has seen its valuation drop in the past few months. At its peak, it was valued at more than $25 billion. With crypto trading volumes falling, its valuation has likely dropped sharply.
The performance of cryptocurrencies is important for the FTT price because it is used to provide incentives to traders in the ecosystem. This explains why other exchange tokens like OKB, BNB, and Huobi Token have crashed.
FTX Token price prediction
The daily chart shows that the FTT price has been in a strong bearish trend in the past few months. As a result, it has moved below the 25-day and 50-day moving averages. It has also moved below the important support level at $31.55, which was the lowest level on January 25th. It is also slightly above the important level at $21.91, was the lowest point in July last year.
FTX token’s Relative Strength Index (RSI) has moved slightly below the neutral point at 50. Therefore, more declines will be confirmed if the coin moves below the support at $21.91. If this happens, the next key support will be at $20.