FTX Token (FTT) Price Surges 55% Amid Growing Speculation on Reimbursement
Analyzing the FTT Price React to FTX Reimbursement Rumors? | Credit: Hameem Sarwar
Key Takeaways
- Rumors about an FTX reimbursement plan began circulating on Sept. 29.
- The FTX Token (FTT) price reached a high of $2.98 on Sept. 29.
- Is this a relief rally, or has FTX started a new upward movement?
FTT is the native token of the FTX exchange, which infamously collapsed in Nov. 2022. Its price has fallen 99% since the all-time high and has no apparent use since the FTX exchange is now defunct.
However, rumors about creditor repayment approval on Sept. 29 sparked the biggest daily price rally over three years. Roughly $16 billion in claims are for FTX creditors. Let’s examine the FTT price movement and see what’s next.
FTT Price Breaks Out
The daily time frame FTT price analysis shows a breakout from a descending resistance trend line and reclaimed of the $1.60 horizontal resistance area.
On Sept. 29, FTT created a large bullish candlestick before falling slightly, leaving a long upper wick in its wake. Despite the wick, FTT trades above the $1.60 horizontal area, likely providing support.
So, an increase toward $3.52 is the most likely outlook for the FTT price.
Read More: FTX Token Price Prediction 2024: FTT Price Analysis
It is also important to note that nothing has yet been confirmed for FTX reimbursements. The exchange’s reorganization plan still needs court approval, and the hearing is set for Oct. 7. Even if the plan gets approved, creditors could take years to get reimbursed.
Furthermore, they will get reimbursed at the asset’s value at the time of FTX’s collapse in Nov. 2022 instead of the current price. For most cryptocurrencies, this is only a fraction of their current value.
FTT’s Upward Movement
The most likely wave count suggests that FTT began a five-wave increase (white) in July 2024. This came after a completed W-X-Y corrective structure starting in December 2023.
This entire structure is likely an A-B-C correction (yellow), where the current increase is wave C.
If waves A:C have a 1:1 ratio, the price of FTT will reach a high of $6.08 before correcting. Then, it could begin a lengthy downward trend.
Therefore, the long-term wave count suggests the FTX token price will eventually break out from the $2.60 resistance area and reach the highest price since Dec. 2023.
FTX Reimbursement Still Far
Even though the FTX reimbursement is likely to take years, the FTT price might have started the final portion of its A-B-C correction. If this is the case, it will break out from the $2.96 area and accelerate its increase soon.
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