Amid the anticipation around the Bull Run, most cryptocurrencies are facing a bullish push these days, including the FTX Exchange token, which is surprising. FTX was among the most popular exchanges but filed for bankruptcy after it misused the user’s funds and other illegal practices, leading to the collapse. It was such a massive fall that it shook the entire crypto market, collapsing the FTT price as well.
Since then, the FTX token has been suffering on the charts, as its value moved from a peak of $85.02 three years ago to the lowest point of $0.7763 a year ago. But today, things are different, as the FTT price is up by 60%, currently at $2.35.
Why Is The FTX Exchange Token Pumping?
Since the collapse of one of the biggest crypto exchanges, investors have been awaiting the repayment of their embezzled funds, which might happen in the next few weeks. The excitement around this is increasing exponentially and peaked today, as crypto influencers have revealed the FTX’s plans of distributing $16 Billion in the repayment process.
The popular crypto influencer Crypto Rover recently posted about FTX’s distribution plan, claiming that the crypto exchange is to begin the process as soon as Monday, which is today. Not only that, but he also explained how big of a deal this is by comparing the redistribution amount to the Bitcoin ETF net flows, Mt Gox transfers, and even Microstrategy’s Bitcoin buying.
BREAKING: FTX will start its $16 BILLION repayment to its creditors tomorrow. pic.twitter.com/ePIcXpsFE9
— Crypto Rover (@rovercrc) September 29, 2024
Many other similar posts have been made on social media platforms in the last 24 hours, causing a buzz in the entire market. It has led to increased activity for the FTX exchange token, resulting in a 2000% surge in the trading volume, currently at $361,803,531. This is what has been pushing the FTT price and market cap for the last few hours.
However, there is no official announcement from the exchange or the legal authorities about this repayment plan, leading to many users’ disagreement with this post. Even the CoinGape journalist clarified that the $16 Billion FTX repayments might happen after the omnibus hearings, scheduled for October 22, November 20, and December 12, 2024.
More importantly, the distribution can happen before the end of the year if the District of Delaware approves the Chapter 11 plan by October 7. Even with that, only the smaller claims (under $50,000) will receive their distribution, but the larger ones will not receive any until the second quarter of 2035.
Will The FTT Price Rally Sustain?
The FTT price rally began a few hours ago, which pushed the value to a month high of $2.7109 per CoinmarketCap. The last time this token’s value surged to this high was during March’s bullish rally, which did not last long, and the same might happen this time as well. As no official announcement has backed the crypto influencer’s posts, the trend will end soon.
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 price moves past the next resistance at $2.4028, an uptrend will likely continue, but the price may fall in contrast. Based on this and the falling wedge pattern forming in the 3-day timeframe, a crypto analyst, Crypto Faibik, has anticipated the FTX exchange token price to rise to $4 or even higher. More importantly, with the Uptober and upcoming crypto market rally, the holders are eyeing heavy gains to cover their losses in this FTX exchange token.
The post Why is the failed FTX Exchange Token Pumping today? FTT Price Up By 60% appeared first on CoinGape.
