FTT price drops by 7.5% as FTX’s CEO attempts to reconcile with Binance head CZ

FTT price went through an unexpected fall in price, but the reason goes back to two of the most influential individuals in the crypto space. FTX’s revelation of Almada Research’s holdings did not sit well with many, which led to sudden selling pressure in the market.

FTT price establishes new lows

FTT price failed to counter the bearishness that ensued from the panic selling from investors. This has resulted in the candlesticks almost falling through the 21-month-old support line. In the past, too, the altcoin has noted a retest of this critical support line at $21.6 only three times in 21 months.

The question is where to go from here on, and the answer most likely is upwards. Beyond the critical support line lies the 14-month-long downtrend, which is yet to be tested as support. Coinciding with the support line at $21.6, FTT price will be looking to bounce off of this line and recover its losses. 

This is a very real possibility for FTT since the price drop had more to do with the ongoing FUD (Fear, Uncertainty, Doubt) than a natural course of movement. This is visible on the Relative Strength Index (RSI) as well, which currently stands in the bearish zone. Closer to slipping in the oversold zone (below 30.0), FTT price is poised for a green candle in the next day or two.

But if the price fall and FTT decline further, it will continue to establish lower lows than noted by the altcoin in almost two years. Thus $17 and lower could be the point of selling for most investors as well as traders to minimize losses.

FTTUSD 1-day chart

However, recovery from here on will be slightly slower since the FUD surrounding FTT will take some time to dissipate.

What caused the fall?

Binance’s CEO CZ came down on the company, tweeting about potentially selling off all its holdings, citing the release of Alameda’s balance sheet. As per the sheet, about 40% of Alameda’s $14.6 billion worth of assets were FTT tokens. Following this reveal, CZ tweeted,

“As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. ¼ (sic)”

Addressing these statements, FTX CEO Sam Bankman-Fried said that the rumors were false and that FTT was fine. He added that the company does not invest its clients’ assets and even went on to say that he would love it if CZ would work together.

Although no immediate impact has been observed, positive reassurances as such could contribute towards recovery.