FTX Token hits new record up 50% so far in September — What’s driving FTT price higher?

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FTX Token hits new record up 50% so far in September — What’s driving FTT price higher?

FTX crypto trade’s local application token, FTT, reached a brand new document top on Monday every week after it agreed to obtain LedgerX, a United States-based crypto spinoff platform, for an undisclosed sum.

On Monday, the FTT/USD trade price surged 16.37% to $73.99 in a market-wide rally that noticed different best cash publish identical however dwarfed worth rallies. Moreover, the pair’s intraday climb coincided with positive factors amongst best trade tokens, with Binance Coin (BNB) emerging 2.3% and Uniswap’s UNI recording 3.5% earnings on a 24-hour adjusted time-frame. 

24-hour efficiency of the highest 10 crypto trade tokens. Supply: Messari

LedgerX acquisition

The inside track of FTX’s Ledger acquisition served as the main bullish backdrop in the back of FTT’s rally.

On Aug. 31, the crypto trade printed that it desires to provide a wide selection of crypto-based asset categories within the U.S. by the use of its regional wing, FTX.US. Consequently, its acquisition of LedgerX, a U.S.-regulated crypto derivatives trade and clearinghouse for retail and institutional traders, would imply broader marketplace publicity for FTX services and products.

FTT jumped 34.42% in line with the LedgerX information on Wednesday. Later, the cryptocurrency entered a consolidation segment, handiest to renew its uptrend on Monday, emerging as much as 16.37%. In overall, its month-to-date positive factors got here out to be a little bit over 50%.

FTT/USD four-hour worth chart. Supply: TradingView

FTX Bitcoin OI already close to earlier document top

Intimately, FTT supplies its holders a possibility to earn buying and selling rate reductions and over the counter rebates at the FTX trade. Token holders too can use FTT as collateral for futures positions. In the meantime, establishments that wish to purchase a white-label model of FTX’s OTC portal and futures trade can achieve this by means of the usage of FTT.

Subsequently, FTX’s community enlargement has a tendency to immediately correlate with FTT’s worth efficiency. The connection used to be visual within the fresh rally, because the Bitcoin Futures Open Pastime at the FTX trade recovered to $2.96 billion on Monday. At its very best, the OI used to be $3.02 billion on April 13, 2021.

FTX BTC Futures Open Pastime. Supply: Bybt

Moreover, FTX’s Bitcoin OI recovered towards its all-time highs quicker than some other crypto derivatives trade. As an example, Binance’s Bitcoin OI reached $4.83 billion, with its best possible stage at $5.27 billion, per data provided by Bybt.

Technical outlook

FTT’s newest bull run has driven it into a worth discovery mode.

FTT/USD day-to-day worth chart. Supply: TradingView

The FTT/USD price underwent a 6% correction after topping out at $73.99 on Monday, signaling profit-taking amongst daytraders. 

Similar: Increasing ecosystem and LedgerX acquisition ship FTX Token (FTT) to a brand new ATH

Now, the pair appears at keeping up enhance close to $61.03 to retest its present all-time top for a bullish breakout. Will have to that occur, the following resistance goal will seem at kind of $85, as consistent with the Fibonacci retracement setup within the chart above.

In the meantime, a persisted sell-off would chance pushing FTT/USD to round $52.48, a degree additionally close to the 20-day exponential shifting reasonable (20-day EMA; the fairway wave).

The perspectives and reviews expressed listed here are only the ones of the writer and don’t essentially mirror the perspectives of Cointelegraph.com. Each funding and buying and selling transfer comes to chance, you will have to behavior your personal analysis when you make a decision.