FTX Price Prediction as Binance CEO Dumps $500 Million Token Holdings – Can FTT Recover?
The price of FTX (FTT) has declined by 3% in the past 24 hours, following Binance's announcement that it would liquidate the entirety of its holdings in the token. Binance's decision comes after a leaked report suggested that the exchange utility token comprises nearly 40% of the assets of Alameda Research, which owns the rival FTX trading platform.
The news stands as a big part of the reason why FTT is down by 12% in the past week, with the coin also 73% down from its all-time high of $84.18, set last September. And with growing speculation over the liquidity of FTX's assets, its possible that FTT may witness further losses in the days and weeks to come.
FTT's chart shows a coin in sharp decline. In particular, its relative strength index (purple) has dived from over 65 a few days ago to 40 today, indicating strong selling pressure and a big loss of momentum.
Likewise, its 30-day moving average (red) is now sinking relative to its 200-day (blue). This comes at a time when sustained declines to this average should mean that it's due a rebound.
However, FTT isn't living under normal circumstances at the moment. As stated above, this is because serious speculation has mounted over the health of its parent exchange, FTX, as well as the company that owns the exchange, Alameda Research.
Towards the end of last week, leaked documents appeared to reveal the state of Alameda's balance sheet. While assets were $14.6 billion against liabilities of $8 billion, observers and commentators quickly noted that $9.19 billion of its assets (63%) were tied up in illiquid altcoins, implying that they'd be hard to sell if Alameda needed some cash in a hurry.
This revelation trigged a wave of speculation concerning Alameda and the state of its
Read more on cryptonews.com
