Is FTX Token (FTT) a buy or sell post BlockFi bailout?

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The price of the FTX token fell sharply even after the parent company took a more active role in the cryptocurrency market. FTT is trading at $25.70, which is slightly below this week’s high of $28.20. Its market cap has shrunk to more than $3.4 billion.

FTX bails out BlockFi

FTX is one of the biggest companies in the blockchain industry. It is a cryptocurrency trading platform that mainly focuses on derivatives trading. According to CoinMarketCap, the company processed cryptocurrencies worth over $2.5 billion in the past 24 hours. Its US division has processed coins worth over $200 million.

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FTX has become relatively active during the ongoing cryptocurrency crash, so some analysts now believe it to be the unofficial crypto central bank.

For example, on Tuesday the company announced that it had provided a $250 million loan to BlockFi, which is a struggling cryptocurrency lender. With cryptocurrency prices falling, companies like Nexo, Celsius, and BlockFi saw significant outflows. As a result, it is feared that most of them will not survive. In a statement, Zach Prince, CEO of BlockFi said:

“This agreement also unlocks future collaboration and innovation between BlockFi and FTX as we work to accelerate prosperity around the world through crypto financial services.”

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The same day FTX announced its investment in BlockFi, the company also said it had acquired Embed Clearing. Embed is a company that provides Whitelabel brokerage services and APIs to brokers. The goal for FTX is to become a major player in the stock market through FTX Stocks.

And last week, the company announced that it had acquired Bitvo, a Canadian cryptocurrency exchange. Other recent FTX acquisitions include LedgerX and Liquid Group. And in particular, Sam Bankman-Fried, the founder of FTX, became one of Robinhood’s biggest investors.

FTX Token Price Prediction

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The 4H chart shows that the price of the FTT token recently experienced a strong downtrend. It formed a double bottom pattern at $20.96. In technical analysis, this pattern is usually a bullish sign. Now the piece has moved back and is at the top chin of the double top pattern.

It is also slightly above the 25 and 50 day moving averages while the MACD moved above the neutral point. Therefore, it is likely that the FTX token will rebound and retest this week’s $30 high. However, a drop below the support at $23 will invalidate the bullish view.

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