FTT Demand Surges as Investors Turn Away from BNB
Recent developments surrounding Changpeng Zhao’s resignation as CEO of Binance have had a profound impact on the cryptocurrency market, leading to a significant surge in demand for FTT, the native token of FTX exchange. This shift in sentiment is particularly notable as investors continue to shy away from Binance Coin (BNB).
FTT’s Impressive Rally
FTT has experienced a remarkable double-digit rally in the past few days, with its price soaring by 50% since November 21st, coinciding with Zhao’s announcement. In the last month alone, FTT has witnessed an impressive uptrend, recording a staggering 300% increase in value.
- Whales have been actively accumulating FTT during this period.
- Data from Santiment reveals a nearly 10% increase in the daily count of FTT whales holding between 100 and 100,000 tokens in the last three days.
- The top ten largest FTT whales have amassed a total of 2.91 million tokens valued at around $13 million since November 3rd.
- This accumulation has resulted in a remarkable 255% surge in FTT’s relative value compared to Bitcoin (BTC).
Assessing FTT’s On-balance Volume (OBV) and Key Momentum Indicators
AMBCrypto’s analysis of FTT’s On-balance Volume (OBV) indicator on a 24-hour chart confirms the ongoing accumulation trend. The OBV, currently at 92.36 million, has surged by 144% since November 8th, indicating growing buying pressure behind the asset.
Key momentum indicators further support the bullish trend:
- Relative Strength Index (RSI) stands at 69.57.
- Money Flow Index (MFI) is at 56.30.
These values suggest that FTT accumulation continues to outpace distribution, favoring buying over selling in the spot market.
Concerns About Price/CMF Divergence
Despite the impressive 300% price surge in the last month, FTT’s Chaikin Money Flow (CMF) exhibits a divergence from its price. The CMF tracks the volume and direction of money flow and a divergence, in which the asset’s price and CMF trend in opposite directions, is considered bearish.
Given the absence of strong market fundamentals supporting FTT’s current rally, this price/CMF divergence could be attributed to short-term speculation, large sell orders, insufficient buying volume, or potential market manipulation.
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