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Price Analysis

Here Is Why FTX Token (FTT) Can Go to $50

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In the latest investment round disclosed Monday, cryptocurrency exchange FTX saw its value increase to $32 billion, suggesting persistent hunger for the sector even as investors become worried about a steep drop in crypto prices. The Bahamas-based firm said on Monday that it had received $400 million in a Series C fundraising round, third in the previous nine months.

FTX is one of the world’s major digital currency exchanges, offering derivatives as well as spot trading. Once an unknown brand, the company has emerged as a prominent participant in the fledgling sector, competing with the likes of Coinbase and Binance. In the United States, the firm does not provide trading services. FTX U.S., its sister exchange, performs this purpose. FTX U.S. announced a $400 million investment last week, valuing the company at $8 billion.

FTX stated that all investors in its U.S. affiliate, including Singaporean state investor Temasek, SoftBank’s Vision Fund 2, and Tiger Global, had agreed to participate in its own financing. With a total of $2 billion in venture capital obtained to date, FTX has amassed a war chest at a time when digital currency prices have plummeted significantly. Bitcoin is down 46% from its November high of around $69,000, while other cryptocurrencies have fallen much more.

Key Takeaways (FTTUSD)

  • According to Bankman-Fried, securing permits in other countries is a major concern for FTX. Its US subsidiary is now permitted to trade derivatives such as futures and options, which allow investors to bet on price swings in an asset. FTX’s worldwide business, according to Bankman-Fried, will be licensed throughout “the majority of the Western world” by the end of this year.
  • The extra cash will be used to continue creating new items, according to the business. FTX developed a platform for selling non-fungible tokens — the crypto world’s equivalent of collectible objects — last year and is now licensing its software to other firms in the financial and gaming sectors, according to Bankman-Fried.
  • FTX stated its user base had increased by 60% since October 2021, when it last raised capital at a $25 billion valuation, and daily trading volumes have increased by 40% to an average of $14 billion. The corporation recently launched a $2 billion venture fund to invest in cryptocurrency start-ups.

Price Analysis of FTTUSD

Fear & Greed Index: 28, Fear

All-time High: $85.02

ROI: 4273.71%

24h change: 7.42%

7d change: 21.90%

Market Cap: $6,037,501,301

Circulation Supply: 138,147,721 FTT

Total Supply: 334,017,057 FTT

Weekly Chart Breakdown of FTTUSD

FTTUSD Price Analysis

Source: TradingView

FTT’s price made an RSI bullish divergence on the weekly timeframe in the past week and bounced from $30. Market sentiment for the FTX token seems bullish at this time, and we might see a sharp rally towards or above $50.

Daily Chart Breakdown of FTTUSD

FTTUSD Price Analysis

Source: TradingView

On the daily timeframe, FTT’s price is moving in a falling wedge and has bounced from its support above $30 with a sharp rally. Now the price is consolidating below $45 because of the $45 resistance and the resistance of the falling wedge. A break above the resistance of the falling wedge might push the price above $50.

4h Chart Breakdown of FTTUSD

FTTUSD Price Analysis

Source: TradingView

FTT’s price is following a rising trendline on a 4h timeframe. This could push the price towards $50. On the other hand, a break below the rising trendline and $40 will push the market towards $35.

1 Hour Chart Breakdown of FTTUSD

FTTUSD Price Analysis

Source: TradingView

FTT’s price has been rejected from the resistance of the rising channel with an RSI bearish divergence. It can push the price towards $41, or a break above $44 will push FTT’s price towards $50.

Final Thoughts

The recent investment of $400 million looks promising to the FTX token’s future. But will it be able to push FTT’s price above $50? We’ll have to see.

I have been in financial markets since 2013. With a diverse experience of different asset classes, I trade and create educational content for Crypto, Forex and Stock Markets.

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