FTT Tumbles Following Circulating Fears of Alameda Insolvency

Today, FTX Token ($FTT) has made its way to the top of CoinMarketCap’s trending list after its price dropped more than 29% over the last 24 hours, according to the crypto market tracking website.

At press time, the price of $FTT stands at $15.70 after dropping 29.44%. $FTT has also weakened against the two crypto market leaders, Bitcoin (BTC) and Ethereum (ETH), by 24.71% and 22.93% respectively. $FTT now trades at its daily low after it set a daily high at $23.15.

The dramatic drop in $FTT’s price follows after market fears of another “Three Arrows” event regarding FTX and its hybrid investment fund/market maker, Alameda Research. This initiated the downfall in $FTT’s price this morning Asia time.

Trading volume for the token has picked up significantly as its daily trade volume is currently $1,067,178,004, which is a 65.34% increase over the last 24 hours.

Daily chart for FTX/USDT (Source: CoinMarketCap)

As can be seen on $FTT’s daily chart, the price of $FTT dropped below the daily 9 and 20 EMA lines at the start of the month. It seemed that the EMA’s were trying to support the altcoin’s price, but the sell pressure that pursued was too much for the support level – causing $FTT’s price to tumble.

The negative impulse in $FTT’s price has forced the daily 9 EMA to cross bearishly below the 20 EMA, after the relative positions of the two EMA lines suggested that sentiment was bullish. In addition to the 9 and 20 EMA lines crossing bearishly, the daily RSI has also plummeted below the daily RSI SMA line, and now finds itself in extreme oversold territory.

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