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The most recent FTT price surge was preceded by comparable price increases in other exchange assets.
The FTX crypto exchange’s native utility token, FTT, set a new high on Monday, a week after it agreed to purchase LedgerX, a crypto derivative platform based in the United States, for an unknown sum.
On Monday, the FTT/USD exchange rate jumped 16.37 percent to $73.99, sparking a market-wide frenzy in which other leading currencies posted similar but larger price gains.
Additionally, the pair’s intraday climb coincided with gains among top exchange tokens, with Binance Coin (BNB) rising 2.3% and Uniswap’s UNI recording 3.5% profits on a 24-hour adjusted timeframe.
The news of FTX’s Ledger acquisition was the key bullish catalyst for FTT’s surge.
On August 31, the crypto exchange stated that it intends to offer a diverse range of crypto-based asset classes in the United States through its regional branch, FTX.US. As a result, its acquisition of LedgerX, a U.S.-regulated crypto derivatives exchange and clearinghouse for retail and institutional investors, would provide FTX services with larger market exposure.
In response to the LedgerX news on Wednesday, FTT increased 34.42 percent. Later, the cryptocurrency entered a consolidation phase before resuming its rise on Monday, surging as much as 16.37 percent. Its month-to-date gains were a little more than 50 percent.
FTX Bitcoin OI already near previous record high
In more detail, FTT holders can earn trading fee discounts and over-the-counter rebates on the FTX exchange. FTT holders can also use their tokens as collateral for futures positions. Meanwhile, institutions interested in purchasing a white-label version of FTX’s OTC site and futures market can do so through FTT.
As a result, FTX network growth tends to be directly proportional to FTT price performance. The connection was evident in the recent recovery, as Bitcoin Futures Open Interest on the FTX platform returned to $2.96 billion on Monday. On April 13, 2021, the OI reached its peak of $3.02 billion.
Additionally, FTX’s Bitcoin OI recovered toward its all-time highs faster than any other crypto derivatives exchange. For instance, Binance’s Bitcoin OI reached $4.83 billion, with its best level at $5.27 billion, per data provided by Bybt.
FTT’s latest bull run has pushed it into a price discovery mode.
The FTT/USD rate fell 6% after reaching a high of $73.99 on Monday, indicating profit-taking among daytraders.
Now, the pair is looking to hold support near $61.03 in order to retest its current all-time high for a bullish breakout. If that happens, the next resistance level will be around $85, according to the Fibonacci retracement setup in the chart above.
Meanwhile, if the sell-off continues, FTT/USD might fall to roughly $52.48, which is also close to the 20-day exponential moving average (20-day EMA; the green wave).