Rumor causes FTX token, FTT, to soar 60%

Amid expectations surrounding a new upward rally, most cryptocurrencies opened lower this Monday (30). However, the FTT token, issued by the bankrupt exchange FTX, went against the trend by registering an increase of 60% in the last 24 hours.

In 2021, when it reached its historic high, FTT was worth US$85, but the collapse of FTX in 2022 reduced this value to practically zero. Last year, FTT reached US$0.7763, its lowest value ever, but has since risen sharply again. With a 60% increase, FTT reached a maximum price of US$2.35.

One of the reasons for this increase was speculation that FTX would begin refunding its customers this Monday. This rumor had no official confirmation, but it served as a catalyst for the sharp rise in the token's price.

Reasons behind the rise of the FTX token

FTT's bullish movement began after a popular cryptocurrency influencer known as Crypto Rover posted about FTX's distribution plan. According to the publication, the exchange should begin the process this Monday.

Additionally, Rover also compared the redistribution value to Bitcoin ETF net flows, Mt. Gox transfers, and even MicroStrategy's Bitcoin purchase. The influencer estimated that FTX could pay up to US$16 billion, a value that is close to the estimates made by the exchange.

This information had a lot of repercussions on social media since the weekend, causing a buzz throughout the market. FTT felt this repercussion after its trading volume soared 2,000% and surpassed $360 million. This movement contributed to the sharp rise in price.

However, there is no official announcement from the exchange or legal authorities regarding this payment plan. Indeed, CriptoFácil reported in August that FTX's refund plan still faces several legal obstacles in the United States.

For now, the only official information is that FTX's plan will be discussed in court in three hearings scheduled for October 22, November 20 and December 12, 2024. Only after these hearings will FTX begin making refunds. of values.

Is FTT appreciation sustainable?

The FTT price rally started a few hours ago, making its price reach $2.71. The last time the value of this token reached this peak was during the March bull rally, which did not last long.

Since no official announcements supported the cryptocurrency influencer's posts, the trend will end soon. After all, without the “fact” of payments, lack of interest in the token should soon cause a strong series of sales.

Technical factors also indicate the presence of sellers as the price has started to decline and is fluctuating between $1.42 and $2.72. More importantly, since these redistribution rumors, buyers have taken control of the token, pushing it into the overbought zone, which is not entirely good news.

The Relative Strength Index (RSI), which indicates trend movement, is at 82, which is the overbought zone, indicating consolidation. Therefore, the market should start selling soon and make the FTT price fall below US$2.00, according to analysts.