Amid the anticipation of the crypto Bull Run, many cryptocurrencies are experiencing a bullish push, and surprisingly, this includes FTX’s native token, FTT. Once the backbone of one of the most popular exchanges, FTX’s token was devastated by its collapse last year. Now, FTT’s price has spiked by 60%, leaving investors wondering: is this the start of a true comeback, or just another fleeting rally?
A Glimpse at FTX’s Collapse
FTX's collapse was one of the most dramatic in crypto history, sending shockwaves through the entire market. Misuse of customer funds and other illegal practices led to the exchange filing for bankruptcy, tanking FTT from its all-time high of $85.02 to as low as $0.7763. The crash left millions of investors reeling and wiped billions from the market.
However, recent developments have breathed new life into the once-shattered token. As of now, FTT’s value has jumped to $1.95, marking a significant recovery compared to its lowest point.
FTT Price Analysis: Why the Sudden Surge?
What’s driving this sudden pump in FTT’s price? The catalyst appears to be rising speculation around FTX’s repayment process. Investors have long awaited the return of their lost funds, and recent social media buzz has heightened the excitement. Crypto influencer Crypto Rover announced that FTX could begin its $16 billion repayment to creditors soon, perhaps as early as today.
Rover’s claim, which compares the redistribution amount to Mt. Gox’s long-awaited transfers and even Microstrategy’s Bitcoin purchases, has sparked a surge in trading volume for FTT, up 2000% to $361.8 million. As a result, the token’s price has risen, though some remain skeptical of the unverified news.
Will FTT’s Price Rally Hold?
The FTT price surge has pushed the token to a monthly high of $2.99, but many are questioning how long this rally can last. The last time FTT saw a similar spike was during March’s bullish rally, which didn’t sustain for long. Given the lack of any official announcement supporting the recent buzz, the current rally could be short-lived.
Technical indicators point to a mixed outlook. FTT’s Relative Strength Index (RSI) currently sits at 82.22, which places it in the overbought zone. Additionally, Momentum and Moving Averages (200) hint at a potential consolidation phase. These technical patterns suggest that while an uptrend is possible, the price could just as easily fall back, especially if there is no concrete news to sustain the current optimism.
Some crypto analysts, like Crypto Faibik, predict that if FTT surpasses its next resistance level of $2.40, the token could see a further rise to $4 or higher. However, with Uptober and a potential crypto market rally on the horizon, FTT holders are cautiously optimistic, hoping to regain some of their heavy losses.
Final Thoughts: Can FTT Regain Its Former Glory?
FTT’s recent 60% surge has certainly captured the attention of the crypto world. However, the rally’s sustainability remains in question, particularly in light of the uncertainty surrounding FTX’s legal battles and repayment plans. While the excitement around potential repayments is driving the market, only time will tell if FTT can regain its former glory—or if this surge is just another temporary spike.
For now, FTT holders remain hopeful that this latest rally is more than just a fleeting trend and that the token—and their lost funds—might yet recover.