Amidst a backdrop of legal and financial turmoil, FTT, the native token of the defunct FTX cryptocurrency exchange, has witnessed a remarkable resurgence. Consequently, the token’s price soared by over 5.81% in the last 24 hours, per CoinMarketCap data. This rally pushed its price to $3.14, significantly boosting its market capitalization to $1.03 billion. Furthermore, trading volumes have surged, recording a 37% increase to $52 million.
Customer Clients’ Plea Fuels FTT’s Rise
As reported by Coinedition, the recent outcry from former FTX customers catalyzes this unexpected surge. These clients have petitioned a U.S. bankruptcy judge to reject FTX’s proposal to value their cryptocurrency deposits based on November 2022 prices. This move by FTX, they argue, deprives them of the benefits stemming from the recent recovery in cryptocurrency values. High-profile cryptocurrencies like Bitcoin, Ethereum, and Solana, which many FTX clients hold, have seen considerable appreciation since FTX declared bankruptcy.
Concurrently, FTX’s bankruptcy proceedings have been under intense scrutiny since its collapse in November 2022. The company’s founder, Sam Bankman-Fried, was found guilty on multiple counts, including money laundering and fraud, and faces a lengthy prison sentence. The outcome of his appeal, scheduled for March, is eagerly anticipated.
However, despite the recent surge in FTT’s value, its future remains uncertain. The potential revival of FTX, discussed by Gary Gensler of the SEC and Tom Farley, former president of the NYSE, offers hope. However, whether a relaunched FTX would incorporate FTT in its operations is still being determined. Moreover, while FTX has committed 90% of its assets to repay customers, the controversy over its valuation method and the ongoing legal proceedings adds complexity to its recovery path.
FTX/USD Technical Analysis
The Relative Strength Index (RSI) rating of 49.72 and moving upwards on the FTT/USD 24-hour price chart indicate that the bullish moment is gaining momentum. This pattern suggests that buyers are gaining market dominance and that future price hikes are possible.
As a result, traders may consider establishing long positions or holding onto current holdings to capitalize on the rising trend. If the RSI rises further and crosses the 50 level, it might indicate a stronger bullish trend and draw additional buyers.
Furthermore, the Rate of Change (ROC) rating of 14.52 supports the bullish momentum by indicating that the price is rising rapidly. This trend might encourage traders to hold on to existing long positions or add to them in anticipation of higher profits.
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