FTX Token Drops 31% Over Two Days, Raising Stability Concerns

The FTX Token (FTT) associated with Alameda Research’s FTX trading platform has declined in value notably—down 31% over the past two days. 

This decline occurred when the cryptocurrency’s price was on the rise for ten consecutive days; FTT’s price had increased more than 100% after the revelation of a repayment plan to creditors. The recent downturn has raised concerns among investors about FTT's potential stability and future performance.

Despite the recent surge, the token faced a strong sell-off as it surpassed major resistance levels, leading many to secure profits amidst heightened market volatility. The rapid shift in investor sentiment is reflected in the increased trading volume, which recently hit $103.09 million.

Current technical indicators provide a bearish outlook for the FTX Token. The Relative Strength Index (RSI), a key measure of market momentum, has retreated sharply towards the neutral point after peaking in the overbought zone. This suggests a cooling off of buying activity and potential caution among traders.

Moreover, the Simple Moving Average (SMA) indicator is nearing a bearish crossover on FTT’s charts, indicating weakening bullish momentum and potentially more downward pressure on prices. If this trend continues, FTT could test lower support levels, currently projected around $2.1085.

Despite the recent downturn, FTT has recorded a significant rise of 74.07% over the past month, hinting at an underlying bullish sentiment that could influence future price movements. Should a bullish reversal materialize, FTT is expected to retest its resistance level at $2.6505. A sustained positive momentum could push the token towards higher resistance levels, with targets at $3.255 in the upcoming weeks.