FTX token FTT Price tanks 40%, Amid Binance Controversy

Key Takeaways:

  • FTT token dropped more than 40% in less than three days.
  • The FTX token tanked after Binance CEO CZ tweeted his plans of closing his FTT positions.
FTX token FTT Price tanks 40%, Amid Binance Controversy
FTT prices dropped 37% within two days after Binance decided to dump its FTT tokens. Image from Unsplash and cryptologos

NEW DELHI (CoinChapter.com) — Cryptocurrency exchange FTX’s native token FTT price tanked drastically since Nov 6, after Binance CEO Changpeng “CZ” Zhao said his firm would liquidate its entire FTT (FTX’s native token) holdings in the coming months.

FTT price plummeted more than 40% from Nov 6’s high of $25.32 to reach an intraday low of $15 on Nov 8 before the bulls took action.

Meanwhile, the FTX token had been moving inside a parallel channel between $32.4 and $22.3 since May before the recent crash resulted in FTT breaking below the lower threshold of the channel. If the downtrend continues, the token might crash to support near $16.8.

FTTUSD daily chart with RSI and parallel channel
FTTUSD daily chart with RSI and parallel channel. Source: Tradingview.com

Meanwhile, the downtrend pushed FTT’s relative strength index into the oversold region, with a value of 24.56 on the daily charts. Traders often consider oversold RSI levels as an indicator of a potential trend reversal favoring the bulls.

Hence, FTT might see buyers enter the market soon, helping push the token’s price to resistance near $19.4. In addition, a break and hold above immediate resistance might help the FTX token challenge resistance near $22 before downside corrections pare gains.

Binance CEO: “Tweet Exchange Not A Fight”

FTX troubles worsened after Binance CEO Changpeng “CZ” Zhao stated that his firm was liquidating its FTT holdings. Samuel Bankman-Fried (SBF) later tweeted a series of posts stating his crypto exchange’s financial health remained robust.

Also Read: Binance Coin(BNB) Hopes For a 68% Price Rally as Rival FTX Battles FUD

On November 8, CZ posted another Twitter thread clarifying he had no feud with FTX, stating, “funny memes, media & some people tried to color this as a fight.”

The Binance CEO noted that he wrote the Nov 7 Twitter post in five minutes, while out with friends. However, CZ had no idea that the post would become “the straw that broke the camel’s back.

CZ stated that his tweets were not an attack against rival crypto exchange FTX.
CZ stated that his tweets were not an attack against rival crypto exchange FTX.

In addition, Zhao highlighted that his tweet noting Binance was closing its FTT positions was simply a gesture to maintain transparency in the crypto sector. The Binance CEO also stated that any allegation of him orchestrating FTX’s current debacle is a conspiracy theory.

I spend my energy building, not fighting. Today I spent my day on our business & our community. I suggest others do the same. Back to building.

Binance CEO CZ said on Twitter

FTX’s trouble started in Aug when Alameda CEO Sam Trabucco suddenly resigned, with FTX President Brett Harrison stepping down a month later on Sept 27. The resignations happened just before Texas Securities Regulator opened a probe into FTX and Sam Bankman-Fried.

Furthermore, SBF’s support of the DCCPA draft bill turned public perception against the FTX founder.

Is there a chance of SOL price dropping $20? Read here to know more.

FTX token, FTX token FTT Price tanks 40%, Amid Binance Controversy

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