FTX Token price has been in the spotlight since Tuesday as concerns about the cryptocurrency rise. The coin has crashed more than 80% in the last two days and more than 90% from its highest point this year. The FTX Token’s market capitalization has dived more than 70% over the last day. Buyers have rushed to buy the crypto’s dip pushing the total volume of the FTX Token traded in the last 24 hours up 159%.
Why is FTX Token Declining?
FTX Token has been among the worst-performing cryptocurrencies this week. Other poor-performing cryptocurrencies include Bitcoin, Ethereum, Cardano, XRP, Dogecoin, Solana, Avalanche, and BNB, among others. According to CoinMarketCap, the total global crypto market volume has slipped more than 7% in the last 24 hours while the total crypto market volume has increased by 68%.
FTX Token price recorded its sharpest decline since the coin’s launch in 2020. FTT, the token native to the crypto exchange FTX, lost most of its value after its biggest rival, Binance, announced its plans to acquire the company. Binance is the largest cryptocurrency firm in the world.
The FTX Token sell-off saw the digital asset wipe out more than $2 billion in value in less than 24 hours. In a tweet, Binance CEO, Changpeng Zhao, stated that he expects FTT to be highly volatile in the coming days as things develop.
The acquisition only affects the non-US businesses of FTX as the US division will remain independent of Binance. However, according to an audit in 2021, the US division of FTX accounted for only 5% of the total revenue.
Bitcoin’s decline to a year low also weakened the overall crypto market sentiment. Bitcoin is the world’s largest cryptocurrency and dominates at 38.94%. As such, Bitcoin’s performance affects the rest of the cryptocurrencies.
FTX Token Price Forecast
The 4-hour chart shows that FTX Token price has been on a strong bearish trajectory for the past two days. The coin has managed to move below the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) is below the oversold region at 21.
Therefore, the FTX Token price is likely to extend its bearish run in the near term. Sellers will be eyeing the next logical support level at $2. However, a move past the 50-day MA will invalidate the bearish view.