Two large red candlesticks form a pattern resembling a double bottom, indicating a change to a bullish trend similar to June. The stability of the price of FTT attracts short-/medium-term investors, while regulations, misconduct and failures pose risks to long-term investors.
In contrast to other cryptocurrencies, FTT, the FTX token, has performed well despite the crypto winter. For example, the price recently recorded an increase of around 7.5%.
The price of FTT hit its all-time high of USD 85.74 on September 8th, 2021, according to Binance. Meanwhile, it reached its yearly low of USD 21.03 on June 14th, 2022.
Following that low, the value of FTT recovered until it reached the monthly high of USD 32.64. The token of cryptocurrency exchange FTX seems to have consolidated between USD 26 and 27.
The daily chart shows that two large red candlesticks form a pattern resembling a double bottom. That pattern indicates a change to a bullish trend similar to June when the FTT price reached its floor.
The price also moved below the 20, 50 and 100-EMA, proving that the trend is still bearish despite the recovery. It must break the resistance at USD 33 to continue to rise. However, a return to USD 21 would mean a further drop in the downtrend marked by the crypto winter.
FTT Grows Thanks to the Performance of the FTX
The performance of cryptocurrency exchange FTX during the crypto winter has helped FTT, as investors feel confident to bet on it. That may have
FTX has played a relevant role in rescuing cryptocurrency platforms like Blockfi, besides some acquisitions this year. However, Sam Bankman-Fried, the CEO of FTX, has recently denied the rumors that they had bought the Huobi exchange.
The Recommendations to Consider about the FTX Token
FTT obtained profits of up to USD 270 million in the first quarter of 2022. However, the lows due to the collapse of the overall crypto market caused the gains to drop.
The price of FTT is attractive to investors with short-/medium-term strategies, as it seems more stable than Bitcoin and Ether. However, long-term investors should remember that centralized exchanges pose risks like regulations, misconduct, and failures.
Beyond the market and utility of centralized projects, their integrity and value lie in the actions of a few people. Aware of that situation, many people have chosen centralized cryptocurrencies, as they do not depend on any government or central bank.
Investors should not ignore that FTT has performed and grown well, showing excellent projections. Those factors have helped drive the price of the FTX Token significantly.
Meanwhile, FTT is trading at around USD 27.48 and has accumulated a 0.1% gain over the last 24 hours. While its daily trading volume is above USD 59.91 million, its market capitalization is about USD 3.68 billion, according to CoinGecko.
Investors should monitor the behavior of the market, external factors, and the movements of the Bitcoin whales. That would allow having a partial perspective of the current state of the crypto asset.
By Alexander Salazar
