- FTT price declined from $25 to $0.90 during Quarter 4 of 2022.
- Former FTX Ceo Sam Bankman-Fried recently pleaded not guilty to charges of financial fraud and misconduct.
- FTT token could go into price discovery to the downside if the $0.82 level is breached.
FTT price is in a challenging spot during the first week of 2023. Former CEO Sam Bankman-Frieds' recent decisions in court may be problematic for the centralized exchange token's future price action.
FTT price token is in a dangerous position
FTX's FTT price token witnessed a 95% decline as the cryptocurrency exchange token fell from $25 to $0.90 in less than two months. During Q4, FTX filed for bankruptcy, and former CEO Sam Bankman-Fried (SBF) was arrested on charges of financial fraud and misconduct of consumer funds.
During the first week of the new year, the FTX scandal grew even more controversial as SBF pleaded not guilty to the alleged charges. The controversy has led investors to wonder if there is any hope for an FTT pullback to recoup some of the losses accrued.
FTX price currently auctions at $0.91 as the bulls have taken charge past the 8-day exponential and 21-day simple moving averages. From a purely technical perspective, the bullish hurdle enables the FTT token's uptrend possibility. The first level of liquidity for market makers to aim for would be the broken support zone at $1.24, which would be a 40% hike from the FTT price today.
FTT/USDT 1-Day Chart
Still, the FTX token is already trading below the first level of support established between November 14 and December 16. Thus the bears have already won the first battle, trapping a month's worth of early buyers in the process. A second attempt at the 2022 swing low at $0.82 should not be taken lightly. A breach of the barrier could induce further downtrend price action pushing the FTX token into price discovery to the downside. Price discovery would suggest erratic and unpredictable behavior from the FTT price with unforeseeable targets.
This video shows how Bitcoin price moves could affect FTT price
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
XRP ruling by Judge Torres denied in Coinbase lawsuit, yet another blow to Ripple
XRP programmatic sales ruling by Judge Torres completely rejected by US Court in Coinbase lawsuit. US Court rejected Coinbase’ motion to dismiss SEC lawsuit, weighing heavily on Ripple’s legal battle.
Sushi price eyes $3 after clearing key weekly resistance level
Sushi price flips the $1.628 resistance level into a support floor after a month of struggle. A temporary retracement might be a good opportunity to accumulate SUSHI before a retest of $3. A breakdown of the $1.267 barrier would invalidate the bullish thesis.
Bitcoin Price Outlook: Will $150 billion bank Morgan Stanley send BTC to new ATH?
Bitcoin has recorded increased volatility this week, with most of BTC holders currently in profit. As market activity continues to grow with long-term holders now ramping up on distribution pressure, the pioneer crypto is bearing the brunt of growing overhead pressure.
Coinbase loses first round of battle against SEC
A day after the SEC filed a lawsuit against Binance last year, it went after Coinbase in a sign that the clampdown is extending to key players in the industry. The latest development in the matter is that the court has ruled in favor of the financial regulator, which means the case will continue.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.