The cryptocurrency market has been buoyed by various developments, and the FTX Exchange Token (FTT) seems to have been affected by these fluctuations. FTX, which went bankrupt in the past due to mismanagement of user funds, has been stagnant for a long time. However, recent market movements have led to a 60% increase in the price of FTT, increasing curiosity and speculation about the reasons behind the rise.

FTX Token's Unexpected Rise

In recent weeks, the FTX Exchange Token has made a remarkable leap forward, in contrast to the negative performance it experienced after the company’s bankruptcy. FTX, whose reputation was damaged by the misuse of user funds, caused FTT’s value to fall from $85.02 to $0.7763. However, FTT is currently up 60% to $2.35. Various sources suggest that this increase is related to rumors of a $16 billion distribution plan to victimized investors. Although there has been no official statement, crypto influencers have created a stir by bringing up these claims. One prominent figure has increased trading activity by stating that refunds could begin soon.

Market Reaction and Trading Volume

Expectations around these uncertainties have seen FTT’s trading volume increase by 2000% to $361,803,531. This indicates high market participation, which supports the price increase. However, some speculators are cautious about these developments as no official announcement has been made by regulators or the exchange. According to CoinOtag, the possible distribution of $16 billion depends on the results of hearings in late October and the following months. It is also stated that if the District of Delaware accepts the Chapter 11 requests, only smaller claims are expected to be paid initially, with larger claims likely to be delayed until 2035.

Technical Analysis: Sustainability of the Rise

Despite the current uptrend, some technical indicators suggest that the FTT price rally may not be sustainable. The token’s Relative Strength Index (RSI) is at 82.2288, which indicates an overbought situation and can often be a sign of a consolidation period. The Commodity Channel Index (CCI) and other momentum indicators are also indicating a similar situation. In order for FTT to continue its rise, it needs to break through critical resistance levels and stay above $2.4028.

Crypto analysts are divided on the sustainability of the current rally. Some predict that FTT could reach $4, especially in the optimistic ‘Uptober’ market conditions, while others warn that the price could fall rapidly due to the lack of concrete statements. This largely depends on how transparent FTX and regulators are about their repayment plans.