The FTX Token price meltdown continues, fueled by feud between CZ and Sam Bankman-Fried
|- FTX Token price knocks out support at $20.00 as declines stretch to $15.00.
- The war of words between Binance's CEO CZ and FTX's Sam Bankman-Fried paints a grim picture for FTT.
- Tentative support at $15.00 is expected to prevent FTT price from plunging to $10.00.
FTX Token price is leaving no stone unturned in its wake as it plunges like a deadweight in the air. The token has been wrapped up in a war of words between two crypto heavyweights – Changpeng Zhao (CZ), Binance CEO and FTX's Sam Bankman-Fried (SBF) since the weekend. Meanwhile, FTT teeters at $17.20 at the time of writing amid what seems like a dead cat bounce from support at $15.00.
FTX Token price bleeds as the war between Binance and FTX exchanges escalates
Tensions have been simmering between a couple of the crypto industry's wealthiest executives, oblivious to the already dilapidated condition of the market. CZ took to Twitter on Sunday and announced that Binance, the largest crypto exchange by volume, is ready to sell approximately $530 million held in the FTT token, the native token of Sam Bankman-Fried's FTX exchange.
Although the Binance CEO later said that the liquidation was part of the exchange’s routine practice of offloading long-held assets, it is widely known SBF’s views on crypto regulation have made him an unpopular figure in the industry, with CZ a leading critic of his.
The trading arm of SBF’s crypto empire Alameda Research now also appears to be in trouble as a result of the FTT bloodbath, after an article published by CoinDesk, a crypto news site, cited problems at the fund.According to the article, far from containing a diversified portfolio of holdings, most of Alameda's balance sheet was made up of FTT tokens. It is rumored the article may even have prompted CZ to dump his holdings of the token.
Attempts by Alameda's CEO Caroline Ellison to allay concerns and clarify the matter yielded no results as investors rushed to withdraw funds from FTX exchange. At the time, Ellison reckoned, the balance sheet heavyweight in FTT tokens was, “for a subset of our corporate entities, we have over $10B of assets that aren't reflected here."
However, the massacre in FTT price has continued unabated, with over 22% in losses recorded over the last 24 hours. Bitfinex exchange also chimed in on the feud between the top executives, saying it could send Bitcoin and other cryptos down a rabbit hole.
"Bitcoin is once again on the retreat today, given continuing concerns about the Federal Reserve's ability to combat inflation and negative newsflow, as tensions between Binance and FTX emerged."
The downtrend in FTT price seems unstoppable
FTX Token price wallows in red waters while respecting a long-term falling channel. As aforementioned, FTT touched support at $15.00 – reinforced by the channel's lower boundary, before rebounding to trade at $17.20.
As observed on the chart, the token's position below the moving average hints at a progressing downtrend. Declines will be exacerbated if FTT fails to hold above the demand area at $15.00.
FTTUSD 3-day chart
Looking at the Direction Movement Index (DMI), it is doubtful that FTX Token price has exhausted the downtrend. If the divergence between the indicator's -DI (in green) and the +DI (in blue) is maxing out, odds will continue favoring a southbound move. Trading below the channel could quickly push FTT to $10.00 before bulls consider the possibility of another trend reversal.
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