Celsius, FTX stir market with token transfers to exchanges
- Celsius and FTX have sent large amounts of various tokens to exchanges for onward sales.
- CEL has seen a rise in open interest despite a slight price decline in the last week.
In the early hours of 20th January, bankrupt cryptocurrency lender Celsius Network [CEL] and exchange FTX initiated notable asset transfers.
According to Etherscan data, Celsius sent 34.08 million MATIC tokens, valued at roughly $26 million, to leading crypto exchange Binance. This follows Celsius’ recent Ethereum [ETH] unstaking activity, which was considered a step towards preparing for creditor repayments.
Additionally, they sent 135 WBTC, valued at $5.6 million, to Binance.
FTT is a big loser
According to data from CoinMarketCap, FTX’s token FTT has shed 13% of its value in the last week. This caused it to rank as the tenth asset with the most losses during that period. At press time, the altcoin exchanged hands at $2.66.
An assessment of FTT’s price movement on a daily chart showed a significant decline in bullish momentum. Readings from the token’s Directional Movement Index (DMI) showed the positive directional index (green) above the negative directional index (red) at press time.
When these trend lines are so positioned, selling pressure is deemed to have exceeded buying pressure.
Confirming the decline in FTT accumulation, its key momentum indicators have trended downward in the last week. Its On-Balance-Volume (OBV) at -3.04 million at press time has dropped by over 125% in the last seven days.
When an asset OBV craters in this manner and is accompanied by a fall in price, it confirms a downtrend.
Interestingly, while FTT’s price pursued lower lows, readings from its MACD showed the formation of a bullish divergence. This suggested that downward momentum might weaken, and a potential trend reversal could be coming.
However, an assessment of its Relative Strength Index (RSI), which declined during the same period, showed that token sell-offs remained rampant, thus limiting the possibility of a recovery in the short term.
CEL sees rise in open interest
Although CEL has seen a 4% drop in price in the last week, its futures open interest has rallied, data from Coinglass showed. Since 10th January, the token’s open interest has increased by 19%.
Due to this surge, the token’s funding rates across exchanges have been equal part positive and negative, as short and long traders slug it out.