FTT is at risk of dipping to a major support level at $10.70 as the asset sheds over 32% of its value in the past day amidst FTX’s insolvency concerns.
Analyses indicate that the native token of Sam Bankman-Fried’s FTX, FTT might be on the verge of falling to the support level at $10.70 before long. These projections follow the asset’s crash below the previous support zone at $21.03, as it plummets by 32% in the past 24 hours. CryptoQuant author Maartunn highlighted that the asset’s next support level is at the $10.70 level.
Next support-level for $FTT is at $10,70 pic.twitter.com/oulZ9QBL4H
— Maartunn (@JA_Maartun) November 8, 2022
FTT, which had started the month with a value of $25, had seen minor dips in the past few days. Despite these instances of price drops as November progressed, the asset had held on to the support at $21.03, showing strong resilience at the price level.
Notwithstanding, the asset broke below the $22 zone following CZ’s remarks on Binance’s FTT holdings. CZ revealed on Sunday that Binance is looking to liquidate all its FTT holdings, amounting to hundreds of millions of dollars as a result of “recent revelations.”
Although the Binance chief assured the community that the exchange will sell off the assets in a way that reduces chances of a market impact, the decision has instigated a wave of terror, as several investors have taken to selling off their FTT holdings, with others taking their assets off FTX amidst insolvency concerns.
Amidst these worrisome reports, FTT has been majorly impacted by the recent trend of selloffs. The asset dropped from a value of $22.06 at 2:45 AM to $15.4 at 5:45 AM (UTC) on Tuesday, marking a 30% dip in just three hours. Despite staging a slight comeback, the asset has been hit hard again, as it drops to a value of $14.7 as of press time, per data from TradingView.
The last time FTT traded at the $14.7 zone was in February of 2021. Following the break below the support at $21.03, there appears to be minimal signs of a reversal in the asset’s current price direction between its current price point and the support at $10.70. Consequently, analysts envision a drop to the psychological level at $10.
Furthermore, Blockchain reporter Colin Wu revealed that over $12M has been liquidated in the FTT Futures Market today. This marked the highest 24-hour liquidation in the asset’s history. The asset currently has a 140M buy order at a price point of $14 on FTX which is still live as of press time.
At present, FTT’s technicals are indicating a “strong sell” signal, according to TradingView. Despite witnessing Neutral zones at a value of 19 on its Relative Strength Index, the asset’s current MACD Level is in the red territory.
Meanwhile, FTX is witnessing a mass exodus of investors amidst these concerning situations. The Crypto Basic recently revealed that the exchange has witnessed nearly $1B in outflows in the past week, with a single whale moving out over $247M in USDT and USDC in less than 24 hours.