The FTX Token (FTT) price is in the second straight day in the red as Bitcoin and other altcoins retreat. The coin is trading at $34.55, which is substantially below this week’s high of $40.23. The coin has a market capitalization of more than $3.2 billion while FTX was valued at more than $18 billion in its recent fundraising.
FTX news. FTX is a leading crypto derivatives exchange. Unlike Coinbase, the firm specializes on relatively risky leveraged products that are illegal in some countries like the US. The main platform is not offered in the US. According to CoinMarketCap, FTX is the fourth-largest exchange in the world after Binance, Coinbase, and Huobi in terms of volume.
The most recent FTX news is that the firm is launching a consumer-facing non-fungible tokens (NFT) platform. NFT is a fast-growing industry that facilitated sales worth more than $2 billion in the second quarter of the year. In fact, many athletes and celebrities have moved to sell their digital assets using the technology. FTX is launching the product by partnering with Dolphin Entertainment.
It is worth noting that FTX will be entering an industry that is already saturated. For example, Crypto.com has a marketplace while Huoni and Coinbase are thinking about starting their own. Further, independent marketplaces have raised millions of dollars from investors. In June, OpenSea raised $100 million at a valuation of more than $1.5 billion. Further, Hong Kong’s Animoca Brands raised $50 million at a $1 billion valuation.
FTX Token price prediction
Turning to the daily chart, we see that the FTT price found a strong support at around $21. It struggled moving below this support level in May, June, and July. This was a notable price since it was slightly below the 61.8% Fibonacci retracement level.
The price recently moved above the 100-day and 50-day moving averages. The two averages even made a bullish crossover pattern. It also appears like it has formed an inverse head and shoulders pattern, which is usually a bullish thing.
Notably, the current retreat has happened after the coin hit the 38.2% Fibonacci retracement level. Therefore, in my view, I believe that this decline is not the start of a bearish trend. Instead, it is a pause and that the coin will resume the bullish trend. If this happens, the next key level to watch will be the 23.6% retracement level at $50, which is about 40% above the current level. This view will be invalidated if it moves below the support at $30.