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FTT Tumbles Following Circulating Fears of Alameda Insolvency

Published 2022-11-08, 02:40 a/m
© Reuters.  FTT Tumbles Following Circulating Fears of Alameda Insolvency

  • The price of FTX token has plummeted following insolvency fears.
  • FTT’s price is now down more than 29%.
  • The drop in FTT’s price has triggered several bearish flags on FTT’s daily chart.

Today, FTX Token (FTT) has made its way to the top of CoinMarketCap’s trending list after its price dropped more than 29% over the last 24 hours, according to the crypto market tracking website.

At press time, the price of FTT stands at $15.70 after dropping 29.44%. FTT has also weakened against the two crypto market leaders, Bitcoin (BTC) and Ethereum (ETH), by 24.71% and 22.93% respectively. FTT now trades at its daily low after it set a daily high at $23.15.

The dramatic drop in FTT’s price follows after market fears of another “Three Arrows” event regarding FTX and its hybrid investment fund/market maker, Alameda Research. This initiated the downfall in FTT’s price this morning Asia time.

Trading volume for the token has picked up significantly as its daily trade volume is currently $1,067,178,004, which is a 65.34% increase over the last 24 hours.

Daily chart for FTX/USDT (Source: CoinMarketCap)

As can be seen on FTT’s daily chart, the price of FTT dropped below the daily 9 and 20 EMA lines at the start of the month. It seemed that the EMA’s were trying to support the altcoin’s price, but the sell pressure that pursued was too much for the support level – causing FTT’s price to tumble.

The negative impulse in FTT’s price has forced the daily 9 EMA to cross bearishly below the 20 EMA, after the relative positions of the two EMA lines suggested that sentiment was bullish. In addition to the 9 and 20 EMA lines crossing bearishly, the daily RSI has also plummeted below the daily RSI SMA line, and now finds itself in extreme oversold territory.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post FTT Tumbles Following Circulating Fears of Alameda Insolvency appeared first on Coin Edition.

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