FTX token FTT price eyes 35% selloff despite Sam Bankman-Fried’s foray into Wall Street

Key Takeaways:

  • FTX token FTT risks dropping 35% based on bearish technical setup.
  • The exchange forays into Wall Street by offering U.S. equities trading.
  • Unlike FTX, Coinbase and Binance take the opposite approach.
FTX, FTX token FTT price eyes 35% selloff despite Sam Bankman-Fried’s foray into Wall Street
image from medium.com

YEREVAN (CoinChapter.com) – FTT, the native token of crypto exchange FTX, had trouble adopting a directional bias in the previous ten days and traded at $30 in Friday’s European session. However, FTT selloff risks intensified as the token formed a bearish continuation pattern.

In detail, the digital asset charted in a Pennant setup represents a period of consolidation after a large movement in an asset’s price. The formation entails two converging trendlines with a similar slope. The price action fluctuates within the said trendlines and is likely to follow the bias preceding the Pennant. Thus, as FTT fell 25% before the setup, it could break down below the Pennant’s support.

FTX (FTT) daily chart featuring a bearish Pennant. Source: Tradingview.com
FTX (FTT) daily chart featuring a bearish Pennant. Source: Tradingview.com

Moreover, if the FTX token follows the bearish scenario, its target price would stand at approximately $20, another 35% decline, equal to the move preceding the Pennant.

Also read: FTX founder, Sam Bankman-Fried, calls for 100% audit of stablecoins

Meanwhile, FTT’s native exchange broadened its options to include zero-commission stock trading.

FTX forays into Wall Street

After purchasing 7.5% of trading platform Robinhood’s stock last week, FTX chief Sam Bankman Fried announced his intention to offer zero-commission stock trading on the platform. According to a press release, FTX Stocks will be provided through the FTX US mobile application. In addition, the exchange plans to offer trading in hundreds of US-listed companies and exchange-traded funds.

To provide transparent trade execution and fair pricing, FTX Stocks will initially route all orders through Nasdaq, and will not receive any payment for order flow. In addition, fractional share trading will be available in select securities.

Cralified the announcement.

Also read: Robinhood revenues drop as share prices fall 11%. Could a crypto push save it?

Media platform Fintech.tv cofounder Kavita Gupta voiced her opinion on the move. She called crypto and stock trading on a single platform “the future,” where retail investors can gain exposure to various assets on a single platform.

The expert also added that “FTX is doing what Robinhood probably tried to do but couldn’t figure out.” Thus, Robinhood might become obsolete after FTX’s strategy.

Coinbase took a different approach.

Conversely, competitors Coinbase and Binance took the opposite route. Coinbase previously commented that the exchange does not intend to move into trading US equities. Similarly, Binance stepped away from its stock-tied token trading operations in 2021.  

Meanwhile, Coinbase faced several headwinds in recent days. First, after outlining cost-cutting measures against the crypto crash, the exchange’s CEO Brian Armstrong voiced bankruptcy fears.

Also read: Coinbase (COIN) dumps to record low alongside Bitcoin while experts give a BUY verdict.

In detail, the crypto exchange reported a devastating quarterly loss of $430 million. As the crypto-related bankruptcy worries intensified, Armstrong noted that the crypto assets Coinbase holds in custody on the customers’ behalf “could be subject to bankruptcy proceedings.”

However, Bankman Fried “showed support” for the Coinbase and tweeted his COIN stock purchase while testing out the stock trading functionality.

Also read: FTX Token paints a bullish cross as FTT rallies over 25% month-to-date.

He further commented that he does not intend to short COIN soon. “Not as of now, though we’d love to support it if we can find a good way to!” added the CEO.

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FTX, FTX token FTT price eyes 35% selloff despite Sam Bankman-Fried’s foray into Wall Street

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