The price of FTX Token (FTT) has faced a massive drop, losing 16% of its value in just 12 hours. This comes after a 92% surge in the past few days, driven by optimism surrounding FTX’s asset compensation plan. Investors initially reacted positively, but sentiment quickly changed.

The approval of the plan by the Bankruptcy Court for the District of Delaware has led many to lock in profits, putting downward pressure on the token’s price. This volatility seen in the FTT price suggests that short-term market movements are being driven by speculative trading.

FTX Token Holders Turn Bearish

Profits taken by FTT holders have spiked significantly over the past 24 hours as many rushed to sell their holdings. The rally, once driven by speculation over asset clearing, has now turned into a wave of profit-taking.

Although FTX assets have not yet been distributed among creditors, FTT holders are preemptively selling their holdings, fearing that the compensation plan may not be as favorable as initially expected. This selling pressure has led to a dramatic drop in the token’s value.

The price drop signals a broader shift in investor sentiment. With many locking in their gains, the market has turned bearish.

Expectations that FTX’s compensation plan would provide substantial relief to token holders initially fueled the rally, but skepticism has since taken hold of the market. As a result, continued selling could put downward pressure on FTT prices, especially if the broader crypto market remains volatile.

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Lucros Realizados do FTTFTT Realized Profits. Source: Santiment

On a macro level, the overall momentum for FTT is starting to weaken. Technical indicators such as the Relative Strength Index (RSI) suggest a reversal in the trend.

The RSI, which had previously reached the overbought zone, is now pulling back, indicating that the bullish phase may be coming to an end. This move could mark the beginning of a bearish trend, especially as more investors look to lock in their profits.

FTT Price Prediction: Support Ahead

High FTT volatility signals that further price fluctuations are likely. Large intraday price swings show that traders are actively responding to market news and developments. Given the broader market uncertainty, investors should prepare for continued price volatility in the near term.

RSI do FTT. RSI do FTT. Fonte: TradingView

FTT has seen a 93% surge in recent days, fueled by speculation surrounding FTX’s asset compensation plan. However, investor sentiment has shifted from bullish to skeptical as the court hearing approaches. This shift has led to the recent sell-off in the token as holders fear potential drawbacks in the execution of the plan.

In the past 12 hours, the price of FTT has plunged by 16%, with the token now trading at $2.46. The price swing on Tuesday, where FTT surged by 40% intra-day only to fall by 17%, highlights the high volatility in the market. This erratic price behavior could continue as investor sentiment fluctuates.

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Análise de Preço do FTT. FTT Price Analysis. Source: TradingView

Furthermore, looking ahead, FTT could continue its downtrend, possibly testing the support level at $2.20. However, if bullish momentum returns, the token could rebound, potentially rising to $2.74. Breaking above this level would invalidate the bearish outlook, offering a renewed sense of optimism for FTT holders.

The article FTX Token (FTT) Plunges 16% After Payment Plan appeared first on BeInCrypto Brasil.