FTT Plunges By 22% After Binance Liquidates $584 Million Worth Of FTT

Twitter icon  •  Published il y a 1 an  •  Hassan Maishera

FTT, the native coin of the FTX exchange, has lost more than 22% of its value today after Binance liquidated $584 million worth of its FTT holdings.

FTT, the native coin of the FTX crypto exchange, has been underperforming over the past 48 hours. The coin has lost more than 20% in the last 24 hours, signaling a massive selling trend.

FTT’s poor performance comes at a time when the broader crypto market is also underperforming. The broader crypto market has lost more than 5% of its value today, with the total crypto market cap now below $1 trillion for the first time in nearly a month,

Why is FTT Underperforming?

FTT has been underperforming over the last 24 hours. It has lost 22% of its value over the last 24 hours and could drop lower again. The poor performance comes after Binance’s CEO revealed that the crypto exchange would liquidate $584 million worth of FTT tokens over the next few months.

Binance is liquidating its position in FTT following a spat between Zhao and FTX CEO Sam Bankman-Fried over the proper role of financial regulations. In October, SBF directed regulators to decentralized exchanges and apps, arguing that they should be regulated like other financial institutions.

Binance had received these FTT as part of its exit from an equity position in FTX. FTX bought Binance’s stake for $2.1 billion in FTT and BUSD, Binance’s stablecoin.

FTT Technical Analysis

The FTT/USD 4-hour chart is bullish as FTT has been underperforming over the last 24 hours. The technical indicators show that FTT is underperforming compared to the broader crypto market and the major coins such as Bitcoin and Ether.

The MACD line dropped below the neutral zone over the weekend, indicating a strong bearish momentum. The 14-day relative strength index of 20 shows that FTT is currently in the oversold region.

At press time, FTT is trading at $18.15 per coin. This is down from the $25 it was trading on Friday. 

If the selling pressure increases, FTT could slip below the $15.429 support level before the end of the day. In the event of an extended bearish trend, FTT could trade below $13 for the first time since January.

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.