The interest towards the exchange-backed cryptocurrencies has been rising exponentially over the current year, mainly because of the successful performance of Binance Coin (BNB), which is a staple crypto of one of the most progressive platforms in this space, and the Bitfinex Leo Token (LEO), a coin that powers the Bitfinex ecosystem, which was introduced in May. These two had showcased the 122% and 1,049% gains, respectively.
Therefore, it shouldn't come as a surprise that FTT, another cryptocurrency that arrived as an offspring of a reputable trading platform, has attracted the attention of crypto traders of all ranks.
Since FTT was introduced to the market only a few months ago, it is essential to understand the coin's fundamentals as it has a direct influence on its price, at least for the time being.
FTX.com is a recently emerged exchange that centers its operations around cryptocurrency derivatives. It is registered in the jurisdiction of Antigua and Barbuda and has been established by a company called Alameda Research, which is famous for incorporating some innovative methods of quantitative trading into the crypto space. The firm was founded in 2017 and has already acquired a reputation as one of the most advantageous platforms for derivatives, leverage, and Over-the-Counter trading. Alameda Research currently has over $100 million in digital assets under its management.
The FTT token was launched as a means for streamlining the process of leverage provision for the registered traders and fueling the entire ecosystem. Moreover, the holders of FTT are enjoying the reduced trading fees, the OTC rebates, etc. It is also important to note that Alameda Research has recently entered into a strategic partnership with Binance, a move that should provide a further boost for the price of FTT.
Like most cryptocurrencies, FTT had a substantial price increase right after it got listed on the exchanges. By the way, the list of trading platforms that feature the pairs with BTC or USDT is not that extensive yet. It includes Bitfinex, Bitmax, Huobi Global, CoinEx, and the mentioned Binance. The aggregate trading volume amounts to $3 million on average, which is quite impressive for a nascent cryptocurrency.
Right after its introduction and the subsequent price spike, which ended in FTT hitting the all-time high of $2.57, this cryptocurrency had gone into a relatively prolonged correction, which coincided with the overall situation on the market. Over that period of time, the coin had been moving comfortably within the trading corridor between $1.17 and $1.5, until it broke through the resistance around December 3 and turned bullish, maintaining this course up until the present day. During the last seven days, FTT gained 15.53%, while its all-time ROI presently stands at 21.72%.
It appears that FTT has gained a strong momentum, which means that it could put up even more gains in the coming weeks.
This notion is supported by a variety of technical indicators, the most prominent of which are EMA and SMA on all timeframes. However, we shouldn't disregard the possibility of FTT taking a breather after such a strong impulse. Therefore, it's necessary to take into account the hints coming from RSI and Average Directional Index, which suggest a short-term sell.
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