Opportunity, not sympathy - FTX price rallies 46% following Binance fiasco

FTX price emerged as one of the many cryptocurrencies that engaged in a bull run after the biggest exchange in the world, Binance, was penalized by the US government. While those watching the altcoin closely for the past few days might have made money on the rally, it is the whales that are benefitting the most.

FTX price skyrockets for the second time this month

FTX price, trading at $4.74 at the time of writing, is observing a 46.5% rally that took place over the past 48 hours. Earlier this month, on November 10, FTT surprised its investors with a 219% increase in price in two days, making this one of the best months for FTT holders since the collapse of the exchange in November 2022.

The altcoin was expected to breach the $4.55 resistance level after the last rally, but this did not happen back then. Instead, the market cooled down, which was accompanied by corrections resulting in sideways movement for FTT. 

According to the Moving Average Convergence Divergence (MACD) indicator, Binance’s collapse emerged as a savior for FTT as the altcoin was nearing the start of a bearish momentum. The signal line (red) was about to cross over the MACD line (blue), and the bars were seemingly about to flip below the neutral line. 

FTT/USD 1-day chart

However, the surge in price prevented this from happening. FTX price is now aiming at breaching $5.00 which is only possible if the $4.55 level is cemented as a support floor.

Should FTT fall through this line to correct some of the rallies witnessed recently, as it did following the last rise, FTX price could slip to $4.00 and $3.00. Losing the support of the latter would invalidate the bullish thesis and leave FTT vulnerable to a decline to $2.42.

FTT whales continue to churn profits

The Binance fiasco, which led to the surge in FTX price, was met with open arms amongst FTT investors. The network witnessed a stark increase in the number of addresses conducting transactions on the chain. Active addresses jumped by 280% from 203 to 772 in 48 hours, showing excitement stemming from potential vengeance among investors. 

FTX active addresses

This is possible because Binance founder Changpeng Zhao (CZ) was one of the biggest critics of FTX following the exchange’s collapse in November 2022. Thus, this is likely a celebration from FTT holders as CZ is set to face 18 months in prison.

However, the most profitable cohort of investors was not smaller traders but whale addresses. As noted by the blockchain analytics platform Santiment, the ten largest wallets have added more than 2.19 million FTT worth nearly $10.3 million since the beginning of the month.

FTX whale addresses accumulation

Their conviction has supported the rallies, which means that their profit booking would likely result in a sudden crash in FTX price. Thus, investors are advised to watch their movement.