While alt coins and tokens across the board were taking price hits, investors shouldn’t forget to check if these assets were running to the exchanges – or away from them. In particular, one asset to watch here was the 26th biggest crypto by market cap, FTX Token [FTT]. At press time, FTT was trading at $38.66, after dropping by 0.65% in the last day. During the past week, the token lost 1.59% of its value.
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CoinShares’ Digital Asset Fund Flows weekly report had some surprising news to share about the state of FTT. The report noted,
“FTX Token, the utility token for the fast growing FTX crypto exchange, bucked the negative trend with inflows totalling US$38m last week, the largest of all crypto assets we track.”
Indeed, this was the case, as FTT supply on exchanges began spiking from around 7 April. Though it had dropped slightly by press time, the supply of FTT on exchanges was close to levels seen in December 2021, when the market crash took place. Clearly, it appears there is a lot of selling pressure on the token.
But who exactly is behind these movements? When studying the data, we can see that FTX Token whales have been active, with a noticeable spike in transactions worth more than $1 million. On 2 May, in fact, 18 such transactions were recorded. Shortly afterwards, FTT’s price fell before recovering again.
Ultimately, however, there’s hope for bulls. TradingView’s Bollinger Bands indicator showed that while the bands were diverging – suggesting volatility – the candles broke through the lower band. This means traders might consider the asset oversold, which could usher in some buying at lower levels.
Adding to that, the Awesome Oscillator [AO] was flashing green bars at press time, indicating that bullish pressure isn’t too far off.