As a seasoned analyst with over two decades of experience in the financial markets, I have seen bull runs and bear markets come and go. The current surge in FTX Exchange token, despite its troubled past, is indeed intriguing.
Despite the buzz surrounding the Bull Run, many cryptocurrencies are experiencing an unexpected uptrend lately, including the token from the FTX Exchange. This is surprising given that FTX, once a prominent exchange, filed for bankruptcy due to mismanagement of user funds and illegal activities, causing its downfall. The impact was so significant it sent shockwaves through the entire crypto market, causing the FTT price to plummet as well.
Ever since then, the value of the FTX token has been on a downward trend on the charts. It peaked at $85.02 three years back, but plummeted to its lowest point of $0.7763 just a year ago. However, today, there’s a change in fortune as the FTT price has surged by 60%, sitting at $2.35.
Why Is The FTX Exchange Token Pumping?
Ever since a major cryptocurrency exchange suffered a collapse, investors have been anxiously anticipating the return of their misappropriated funds. This potential restitution could occur within the coming weeks, and as speculation mounts, it has reached an all-time high today. The buzz has grown rapidly, particularly after crypto influencers unveiled FTX’s plans to distribute a staggering $16 Billion in the refund process.
Crypto influencer Crypto Rover recently shared information about FTX’s upcoming distribution strategy. He indicated that the crypto exchange plans to initiate this process starting on Monday (which is today). Moreover, he emphasized the significance of this event by likening the scale of redistribution to the Bitcoin ETF inflows and outflows, Mt Gox transfers, and Microstrategy’s Bitcoin purchases.
BREAKING: FTX will start its $16 BILLION repayment to its creditors tomorrow.
— Crypto Rover (@rovercrc) September 29, 2024
Over the past day, numerous comparable posts have circulated on social media, generating quite a stir throughout the financial market. As a result, the FTX exchange token has seen heightened trading activity, causing its volume to skyrocket by an astonishing 2000%. This surge has driven the token’s price and market capitalization for several hours now, reaching $361,803,531.
Despite no formal confirmation from the exchange or legal bodies regarding this repayment plan, it’s causing dissent among users. In fact, a CoinGape journalist has mentioned that the $16 Billion FTX repayments might not occur until after the omnibus hearings taking place on October 22, November 20, and December 12 in the year 2024.
As a crypto investor, I’m keeping a close eye on the situation. If the District of Delaware approves the Chapter 11 plan by October 7, the distribution could occur before the end of this year. However, it’s essential to note that only smaller claims (valued under $50,000) will receive their payout. The larger claims, unfortunately, won’t see any distribution until the second quarter of 2035.
Will The FTT Price Rally Sustain?
In my recent observations, a surge in the price of FTT occurred just a few hours ago, propelling it to a one-month high of $2.7109 according to CoinmarketCap. Interestingly, I noticed that this token’s value last reached such heights during the bullish rally in March, which proved short-lived. Given this history, there’s a possibility that the current trend might also be temporary. However, as of now, no official announcement has been made to support the claims made by crypto influencers, suggesting that the rise may soon subside.
The technical factors also indicate the presence of the sellers as the price has begun to drop and is fluctuating between $1.42 and $2.72. More importantly, since such redistribution rumors, the buyers have taken over the FTX exchange token, pushing it toward the overbuying zone, which is not entirely good news. The Relative Strength Index (RSI), which indicates the trend’s movement, is at 82.2288, which is the overbuying zone, indicating a consolidation. Moreover, the CCI, Momentum, and Moving averages (200) confirm the same.
If the FTT token’s value surpasses its immediate resistance at $2.4028, it could indicate a prolonged upward trend; however, there’s also a possibility that it might decrease instead. Notably, Crypto Faibik, a renowned crypto analyst, predicts that the price of FTX exchange token could reach $4 or potentially more due to a forming wedge pattern over a 3-day timeframe. Most notably, with Uptober and the impending crypto market rally on the horizon, holders are eagerly anticipating substantial returns to offset their previous losses associated with this FTX exchange token.
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2024-09-30 11:40