FTX Token (FTT) has shown a remarkable 20.40% surge in the last 24 hours, reaching $2.40 in trading value.
This sudden rise in FTT’s price can be attributed to the growing speculation surrounding FTX’s bankruptcy proceedings. There are talks on social media suggesting that FTX might start distributing funds to creditors and customers, which has ignited interest in FTT.
Despite initial rumors suggesting payouts could commence by September 30, no actions have been taken yet. However, anticipation is high for a critical court hearing scheduled for October 7, which could potentially approve the distribution of funds, starting with smaller claims under $50,000 possibly seeing payouts by the end of 2024, while larger claims might have to wait until 2025.
Moreover, AI-based predictions from PricePredictions indicate that FTT could reach $2.65 by October 31, 2024, representing a 10.42% increase from its current price of $2.40.
FTT’s price history has been a rollercoaster ride, experiencing both extreme highs and lows. After reaching nearly $80 in its peak in 2021, FTT faced a significant drop following FTX’s collapse in November 2022. The token’s market cap has recently surged from $472 million to $789 million in the past week, showcasing renewed interest.
Technically, FTT is currently holding support at $1.83, with a key resistance level at $2.58. Breaking through this resistance could open up further upside potential for the token, particularly if the court hearing on October 7 favors FTX’s restructuring plan.
October 7 is set to be a crucial day for FTT holders, as the court will decide the fate of FTX’s restructuring plan. If approved, the market could witness significant liquidity injections as creditor payouts begin. Analysts like Su Zhu from Three Arrows Capital believe that even partial reimbursements could provide a boost to the crypto market, benefiting assets like FTT and Bitcoin.
Forbes has also highlighted the potential for a Q4 crypto rally with the combination of FTX’s bankruptcy distributions, SEC approvals for IBIT options trading, and monetary easing by global central banks. FTT could be well-positioned to capitalize on this opportunity, especially if market sentiment remains positive.
