The FTX Token had a parabolic rally in the overnight session after the developer behind it acquired a derivatives provider. The FTT Token rose to a new all-time (ATH) high of $68, bringing its total market capitalization to more than $6.1 billion. This makes it the 28th biggest cryptocurrency in the world.
FTX acquires LedgerX
FTX is one of the biggest cryptocurrencies exchange in the world. According to CoinMarketCap, the company is the sixth biggest exchange in terms of volume. In the past 24 hours, the company’s volume increased by more than 7% to more than $3 billion as cryptocurrencies rebounded.
FTX is also one of the best-funded exchanges in the world. Recently, the company raised $900 million from investors, giving it a market value of more than $18 billion.
The company used some of the proceeds of this fundraising to acquire LedgerX, as the company grows its market share in the futures and options industry. The acquisition was done through FTX.US, its US subsidiary. In a statement, the company’s CEO said:
“Our longer-term expansion strategy is for FTX.US to offer a wide array of asset classes in regulated markets, and this is our first major step in that direction.”
LedgerX is a regulated company that offers an array of services, including a crypto derivatives exchange and clearinghouse. It serves both retail and institutional investors. It was the first company in the industry to be regulated in the US and has cleared more than 10 million options and swap contracts.
Therefore, the FTX Token price rose because of the hype surrounding this acquisition. Also, analysts expect that the FTT price will do well as demand for the coins rise. The coin also rose because of the strong performance of Bitcoin and other altcoins. For example, Bitcoin approached the important resistance level at $50,000 while the total market cap of all coins tracked by CoinMarketCap soared to more than $2.2 trillion.
FTX Token price prediction
The daily chart shows that the FTT price declined and found a strong support at $22.2 during the recent cryptocurrencies meltdown. It then started rebounding in July as demand for altcoins rose. Along the way, it formed what looks like a cup and handle pattern. Overnight, the price moved above the overall resistance level at $62.50, which was the previous highest point.
Therefore, the FTT price will likely maintain the bullish trend as bulls target the key resistance at $70. However, a short pullback is likely as the FOMO profit-taking sets in.
