FTX Token (FTT) Defies Market Downturn, Leads Crypto Rally

FTX Token (FTT) has emerged as the day's top performer, defying the broader market downturn with a rally.

FTX Token (FTT) Surges 7%, Buoyed by Spot Inflows, Rising Open Interest

Despite the broader crypto market facing challenges with a 24-hour loss of $53 billion in total capitalization, FTX Token (FTT) managed to buck the trend with a 7% rally, emerging as the day’s top performer.

This rally is supported by several on-chain metrics, indicating a shift in market sentiment toward FTT. As a result, the token is positioned for potential extended gains.

FTT Surges, Outpacing Major Assets

A closer examination reveals a key indicator of renewed demand for FTT – an uptick in spot inflows.

Although the inflows are still relatively small, with an increase of $205,000 on Wednesday, this marks a change in direction after several days of outflows.

Specifically, when an asset experiences spot inflows, it signifies an increase in the purchase of that asset in the spot market, where transactions are settled immediately.

As a result, this trend suggests a gradual rise in demand for FTT, with its buyers stepping in to acquire the token at the current market price.

To provide context, spot outflows occur when traders sell their assets in the spot market, leading to a decrease in the purchase of that asset.

On the other hand, a continuous shift in market sentiment toward an asset is usually observed when spot inflows outpace outflows, indicating that traders are net buyers of the asset.

In contrast, when outflows exceed inflows, it suggests that traders are net sellers of the asset, which may indicate profit-taking or a bearish outlook on the asset.

Moreover, bolstering this bullish outlook is the token’s rising open interest, which further supports the narrative of a market shift toward FTT.

At the time of writing, FTT’s open interest amounts to $2.03 million, reflecting an increase of 10% over the past 24 hours.

For a deeper understanding, open interest measures the total number of outstanding derivative contracts, such as futures or options, that have not yet been settled.

When an asset’s open interest surges during a price rally, it indicates that more traders are entering new positions rather than closing existing ones, signaling strong market participation.

This trend suggests growing confidence in FTT’s current rally, as higher open interest combined with rising prices can point to sustained bullish momentum.

FTT Price Prediction: A Technical Analysis

An assessment of the FTT/USD 1-day chart shows the token attempting to stabilize above its 20-day exponential moving average (EMA), confirming the gradual shift in market trend.

The 20-day EMA measures an asset’s average price over the past 20 trading days by giving more weight to recent data, making it a responsive gauge of short-term trends.

When an asset’s price breaks above this key moving average, it signals a shift toward bullish momentum, as traders often view this as an early indication of upward trend continuation.

If demand strengthens and FTT continues its rally, it could break above its 20-day EMA and climb toward $2.27. A successful breach of this resistance could propel the token’s value to $2.57.

However, if profit-taking commences, the token could lose its recent gains and plummet to $1.94.