- FTX Token price remarkable rally has faded in the past few days.
- FTX has continued with its shopping spree recently.
- The company is set to acquire South Korea’s Bithumb.
The FTX Token price has pulled back as the recent crypto comeback waned. FTT declined to $28, which is about 8.22% below the highest point this month. Its market cap dropped to about $3.4 billion, making it the 22nd biggest coin in the world.
FTX remains in the spotlight
FTX is one of the biggest companies in the blockchain industry. At its peak in 2021, the company was valued at over $32 billion. Like Coinbase, the firm’s valuation has likely dipped in the private market.
The company has made headlines in the past few months as it has spent millions of dollars acquiring troubled firms in the industry. For example, it recently agreed to acquire BlockFi, a crypto lender that recently became troubled.
FTX also acquired Bitvo, Storybook Brawl, Liquid Global, and LedgerX. During the weekend, it was reported that the company hoped to acquire Bithumb, one of the biggest exchanges in South Korea.
At the same time, the company made a proposal to acquire Voyager Digital, the bankrupt Canadian exchange. In a statement, Voyager said that the deal by FTX was significantly lower than what it is worth.
Analysts believe that this is a negotiation tactic since no other bids have been made. In total, FTX has committed to spend over $1 billion in acquiring troubled companies in the sector. As such, they believe that FTX is the most powerful company in the sector.
Still, internally, FTX has seen its business weaken dramatically. Like other exchanges, its total volume has slipped sharply in the past few weeks. According to Nomics, its trading volume on Monday was worth about $4.7 billion. At its peak in 2021, the company’s volume was over $38 billion.
This decline has affected the value of the FTT token, which is used to provide an incentive for traders in the ecosystem. It is also unclear how the token will benefit with these acquisitions.
FTX Token price
The four-hour chart shows that the FTT token price rose to the important resistance level at $30 last week. Recently, however, the bullish momentum has faded as the coin has managed to move below the important 25-day and 50-day moving averages. The Relative Strength Index (RSI) has been in a strong bearish trend.
Therefore, there is a likelihood that the FTX token will continue falling as sellers target the next key support level at $25. A move above the resistance at $30 will signal that there are more buyers in the market.
