FTT volatility has sparked interest recently, but caution is advised for potential buyers.
FTX Token (FTT) has shown increased volatility lately, with a bullish bias on the daily timeframe. The token has been pushing higher since September, establishing an uptrend since November.
However, there are several factors to be wary of:
Negative capital flows: The Chaikin Money Flow (CMF) indicator has consistently been below -0.05 for most of the past year, indicating a lack of steady capital inflows.
Bankruptcy proceedings: FTX's bankruptcy proceedings are set for January 2025, which could lead to further volatility in the FTT token.
Regulatory warnings: CoinMarketCap displays a warning that the FTT token no longer has any use and may be liquidated to pay creditors.
Speculative factors: Recent volatility has been influenced by speculation about a potential presidential pardon for Sam Bankman-Fried and the approval of FTX's reorganization plans.
While the Relative Strength Index (RSI) has been above neutral 50 over the past month, suggesting bullish momentum, the negative CMF readings indicate that any uptrend might be unsustainable.
Given these factors, investors are advised to proceed with extreme caution. Traders should be particularly aware of news developments that could impact their positions. The current situation underscores the high-risk nature of cryptocurrency investments, especially those associated with troubled entities like FTX.