FTX Token hit a new record in the first week of September with an increase of 50% – what is the cause?

The FTX change’s native FTT utility token hit a new record excessive on September 6, a week after the change agreed to accumulate the US-based mostly crypto-derivatives platform LedgerX for an undisclosed quantity.

On Monday, FTT price rose 16.37% to an intraday excessive of $ 73.99 in a market-wide rally the place different prime cash rallied equally however at a decrease charge. However, at the time of writing, the price is correcting again into the $ 70 area. In addition, FTT’s intraday earnings coincided with these of different prime change tokens reminiscent of:

FTT 1 Hour Price Chart | Source: Tradingview

LedgerX acquisition

The information that FTX acquired LedgerX served as the foremost bullish catalyst for the FTT rally.

On August 31, the change introduced that it could provide a vary of crypto-based mostly belongings in the United States by its regional department FTX.US. Therefore, the acquisition of LedgerX, a derivatives change and clearing facility for institutional / private US regulated buyers, will make sense to create market entry alternatives.

FTT was up 34.42% on September 1, following LedgerX’s information. Next, the twenty seventh cryptocurrency on the capitalization chart solely entered a consolidation part after which continued its uptrend on Monday with a return of 16.37%. Overall, the revenue since the starting of the month is greater than 50%.

4 Hour FTT Price Chart and EMAs | Source: TradingView.com

Bitcoin Open Interest on FTX is approaching earlier record excessive

FTT provides holders the alternative to obtain charge reductions and rebates for OTC trades on the FTX change. Token holders may use FTT as collateral for a futures place. In the meantime, establishments that want to buy a white label model of the OTC gateway and trade FTX futures can accomplish that by way of FTT.

As a end result, the community progress of FTX tends to correlate instantly with the price growth of FTT. That relationship was evident throughout the current rally, when the FTX Bitcoin Futures OI (Open Interest) rebounded to $ 2.96 billion on Monday, and peaked on April 13, 2021, when the open curiosity hit $ 3.02 billion. Dollar.

BTC Futures Open Interest on FTX | Source: ByBt.com

Additionally, FTX’s Bitcoin Open Interest is recovering to an all-time excessive sooner than another derivatives change. For instance, Binance’s Bitcoin OI was $ 4.83 billion, whereas the peak was $ 5.27 billion, in keeping with ByBt.com information.

Technical outlook

FTT’s current rally has pushed the price into discovery mode.

Daily FTT Price Chart | Source: TradingView.com

FTT price corrected 6% after hitting $ 73.99 on Monday, signaling day merchants to take earnings.

Now FTX Token is attempting to keep up help close to USD 61.03 to retest the present all-time excessive and intention for a bullish breakout. When that occurs, the subsequent resistance goal in keeping with the Fibonacci retracement setup on the chart above can be round $ 85.

Conversely, the ongoing promote-off threatens to push the FTT all the way down to round USD 52.48, additionally near the 20-day exponential shifting common (20-day EMA, inexperienced wave).

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