- FTX Token has formed an inverted cup and handle pattern.
- Volume in exchanges like FTX has declined sharply lately.
The FTX Token price has been in a consolidation phase in the past few days as concerns about the blockchain industry remain. FTT is trading at $30.70, which is about 23% above the lowest level last week. The coin remains about 62% below its all-time high, giving it a market cap of more than $4.2 billion.
FTX to offer stocks
FTX is one of the biggest companies in the cryptocurrency industry. The firm was recently valued at over $25 billion, making Sam Bankman-Fried a billionaire. At the same time, FTX US raised funds at a $8 billion valuation.
FTX offers a platform where people can buy and sell cryptocurrencies. Its international brand is mostly common among traders, who love its cryptocurrency derivatives like leveraged tokens and perpetual futures. These services are not offered in the United States because of how risky they are.
FTX Token is the native cryptocurrency for the ecosystem. Its role is relatively simple. It is used to incentivize crypto traders in the ecosystem. Holders benefit from lower fees, free withdrawals, and returns through staking.
Activity in the cryptocurrency industry has been slowing recently because of the overall weak performance of digital coins. A quick look a CoinMarketCap shows that the volume processed by most exchanges, including FTX has been in a downward trend.
In its most recent earnings season, Coinbase said that its number of users had declined. As a result, the firm managed to record a big loss. This explains why FTT and other exchange tokens like Huobi, OKB, and Gate Token have slipped.
FTX has been seeking to grow its ecosystem to other financial assets. For example, in its platform, users are able to trade fiat currencies, volatility, and other prediction markets.
As part of its growth, the firm announced that it will move to the stock trading industry in the coming months. This announcement came a week after Bankman became one of the biggest shareholders in Robinhood. Still, the stock trading industry has become extremely competitive, with companies like SoFi and WeBull offering these services.
FTX Token price prediction
The FTX token has been in a strong bearish trend lately. The daily chart shows that the coin has formed what looks like an inverted cup and handle pattern that is shown in black. It is now trading at the lower side of this cup pattern.
The coin has moved below the 25-day and 50-day moving average while the Relative Strength Index (RSI) is slightly above the oversold level. Therefore, because of the cup and handle pattern, the FTT price will likely have a bearish breakout.
