The FTX Token (FTT/USD) came under pressure even after the parent company announced a major deal with the best Formula 1 team in the world. FTT was trading at $55.98, which was a few points below this week’s high of $61.15.
FTX and Mercedes deal
FTX is a leading cryptocurrency exchange that is best known for its leveraged products. The company transacts more than $5 billion worth of cryptocurrencies every day. It works through its main brand and FTX US brand that targets American clients.
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In a statement on Thursday. FTX announced a new sponsorship with Mercedes-AMG Petronas Formula 1 team. The new deal will see the company’s logo appear in F1 cars and in drivers’ clothes. It will be unveiled on Sunday during the Russian Grand Prix event.
At the same time, there is a likelihood that FTX will use the team’s popularity to extend its non-fungible tokens (NFT) business. In a statement, Sam Bankman, the founder of FTT said:
“FTX is thrilled to partner with the reigning Formula One World Champions and current team point leaders, Mercedes-AMG Petronas, to continue amplifying our position as the leading global cryptocurrency exchange.”
The partnership brings two leading players in the industry. According to CoinMarketCap, FTX is among the top five of the biggest crypto exchanges in the world. At the same time, Mercedes’ Formula 1 time has won the drivers’ and constructors’ championship for several years in a row. Therefore, the deal will likely see FTX gain more customers globally because F1 is one of the most popular sports around the world.
FTX is now one of the few crypto projects that have a deal with F1. For example, Crypto.com announced a major deal a few months ago. Tezos also has a partnership with Red Bull.
FTX Token price prediction
The daily chart shows that the FTT price has been under intense pressure in the past few weeks. The current price is about 35% below the highest level this month. It is also below the important resistance at $66.95 and slightly below the short and longer-term moving averages.
The pair seems to be forming the handle section of the cup and handle pattern. Therefore, while it is a bit early to tell, there is a likelihood that the FTX Token price will soon rebound.