FTX Token (FTT) Briefly Flies 20% With Bears Holding Its Legs

FTX Token (FTT) Briefly Flies 20% With Bears Holding Its Legs
FTX Token (FTT) Briefly Flies 20% With Bears Holding Its Legs

LUCKNOW (CoinChapter.com) — While Bitcoin and Ethereum largely consolidated on Nov 16, FTX’s native token, FTT, witnessed a rather volatile trade day. Its price rose briefly by 20% to $2.1 but later pared most of its gains and settled around $1.60.

A single candlestick on the 4-hour timeframe, which closed at $2.06, outlined the temporary spike. However, retail traders likely cashed out immediately, causing a red candlestick to close at $1.64. 

FTT/USD daily price chart. Source: TradingView
FTT/USD four-hour price chart. Source: TradingView

From a technical perspective, little weight can be thrown behind the temporary rise. FTT was still trading below the 50-4H (yellow) and 200-4H (green) simple moving average (SMA) lines, indicating that the general market trend was still bearish over the mid-long term. 

FTT/USD four-hour piece chart. Source: TradingView
Four-hour piece chart. Source: TradingView

Should bulls fail to find support at the 20-four SMA, a new low could be established at the bottom trendline and around the $1-mark.

Meanwhile, the RSI used to gauge market direction rebounded from the oversold zone but was yet to move beyond 50. Failing to do so would likely keep bullish bets away until the broader market turns risk-on. 

Active Address Ratio and Large Holders’ Netflow

Elsewhere, the declining state of some of its fundamentals could include further panic among retail investors. 

Data from IntoTheBlock showed that the FTT decline last week was accentuated by a sharp drop in its active addresses ratio.

FTT daily active addresses.
FTT daily active addresses. Source: IntoTheBlock

The ratio is used to determine how active blockchain users are on average. In general, a declining ratio indicates that fewer users transacted with blockchain tokens. Such slumps tend to coincide with a drop in a crypto’s price value. 

Furthermore, data showed large holders shedding their FTT tokens amid the price drop. According to ITB, FTT’s large holders’ NetFlow was constantly declining over the past few days. Typically, this figure indicated reduced positions from those holding over 0.1% of the tokens circulating supply. 

FTT Netflows from to and from exchanges. Source: IntoTheBlock
FTT Netflows from to and from exchanges. Source: IntoTheBlock

Exchanges delist FTT trading pairs


As the FTX token has been under tremendous pressure of late, several exchanges have either delisted or halted trading of the FTX/USD token pair.

Source: Twitter

On Nov 14, the world’s largest exchange, Binance, decided to delist the FTT trading pairs.

Earlier, BitMEX delisted the perpetual swap contracts FTT/USD and FTT/USDT on its exchange, citing a reduction in spot trading for the said pairs. 

More recently, Southeast Asian-based trading platform Zipmex said it would delist FTT on Nov 22 but will leave withdrawals open until Feb. 14, 2023. An official statement read:

“Zipmex is constantly reviewing the listed assets on our platform as we strive to provide the best trading experience for our customers. As a result, Zipmex is delisting FTX Token (FTT)”

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