Journalist
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- FTT has seen a double-digit rally in recent days.
- Whales have been accumulating the altcoin more and more.
The resignation of Changpeng Zhao as CEO of Binance and the associated decline of BNB Coin [BNB] Accumulation has resulted in an increase in demand for FTT, the original sign of the bankrupt exchange FTX, data from the chain shows.
The price of FTT, which was trading at $4.50 at the time of writing, has risen 50% since November 21, when Zhao announced his departure from cryptocurrency exchange giant Binance.
Fueled by October’s general market rally, the FTT has started an upward trend over the past month, rising more than 300% in the past 30 days. FTT whales have increasingly collected the altcoin during this period to take advantage of the unexpected price increase.
Dates of Santiment further showed that in the past three days, the daily number of FTT whales holding between 100 and 100,000 tokens has increased by almost 10%. At the time of writing this figure stood at 4010.
Source: Santiment
Likewise, the top ten FTT whales have amassed a cumulative value of 2.91 million tokens worth approximately $13 million since November 3. This has resulted in a 255% increase in the relative value of the FTT against the leading coin Bitcoin [BTC] From that moment on.
Source: Santiment
It looks good, but…
AMBCrypto’s assessment of FTT’s On-Balance Volume Indicator (OBV) on a 24-hour chart confirmed the accumulation trend of recent weeks.
At 92.36 million at the time of writing, FTT’s OBV is up 144% since November 8.
When an asset’s OBV witnesses this kind of significant rally, it means that there is growing buying pressure behind the asset as more buyers are willing to buy it at the current price.
Furthermore, the FTT’s key momentum indicators, positioned above their respective center lines, showed that spot market participants are still favoring buying over selling.
At the time of writing, FTT’s Relative Strength Index (RSI) was 69.57, while the Money Flow Index (MFI) was 56.30. These values show that the accumulation of FTTs continues to exceed distribution.
However, despite the 300% price increase in the past month, FTT’s Chaikin Money Flow (CMF) continues to diverge from FTT’s price.
The CMF indicator tracks the volume and direction of money flow into and out of an asset over a period of time.
Read FTX Tokens [FTT] Price prediction 2023-24
A divergence occurs when an asset’s price and its CMF trend go in opposite directions. This divergence is considered bearish and indicates an impending correction when the price of an asset rises while the CMF value falls.
In the absence of strong market fundamentals supporting the FTT’s current rally, the price/CMF gap could be due to short-term speculation, large sell orders, insufficient buying volume, or market manipulation.
Source: FTT/USDT on TradingView