The FTX token had a parabolic rally in the night after the developer behind it acquired a derivatives provider. FTT soared to a new all-time high of $68, bringing its total market cap to more than $6.1 billion. This makes it the 28th largest cryptocurrency in the world.
FTX Acquires LedgerX
FTX is one of the largest crypto exchanges in the world. According to CoinMarketCap, the company is the sixth largest exchange in terms of volume. In the last 24 hours, the company’s volume rose more than 7% to more than $3 billion as cryptocurrencies rallied.
FTX is also one of the best-funded exchanges in the world. Recently, the company received $900 million from investors, giving it a market value of more than $18 billion.
The company used some of the proceeds from this capital raise to acquire LedgerX as it expands its market share in the futures and options industry. The acquisition was made through FTX.US, its U.S. subsidiary. In a statement, the company’s CEO said:
Our longer-term expansion strategy is for FTX.US to offer a broad range of asset classes in regulated markets. This is our first major step in that direction.
LedgerX is a regulated company that offers a range of services, including a crypto derivatives exchange and clearinghouse. It serves both retail and institutional investors. It was the first company in the industry to be regulated in the US and has cleared more than 10 million options and swap contracts.
Therefore, it is not surprising that the hype surrounding the acquisition led to the rise in the price of FTX Token. Moreover, analysts expect the price to perform well as the demand for it increases. The strong performance of Bitcoin and other altcoins is also contributing to the price rise. For example, Bitcoin approached the important resistance level of $50,000. At the same time, the total market capitalization of all coins tracked by CoinMarketCap rose to more than $2.2 trillion.
FTX Token Price Forecast
<img src=”//www.w3.org/2000/svg%22%20viewBox=%220%200%201400%20680%22%3E%3C/svg%3E” data-src=”/uploads/2021/09/FTX-Token-Price-1400×680-1.jpg” alt=’FTX Token Price Forecast’ width=”1400″ height=”680″ />
The daily chart shows that the FTT price declined during the last cryptocurrency meltdown, finding strong support at $22.2. It then began to recover in July as demand for altcoins increased. Along the way, it formed a pattern that looks like a cup with a handle. Overnight, the price rose above the general resistance level at $62.50, which marked the previous high.
Therefore, the FTX token price is likely to maintain its uptrend and the bulls will target the key resistance at $70. However, a short pullback is likely as FOMO profit taking kicks in.