FTX Token (FTT) rose 64% to $2.23 ahead of the October 7 court hearing on creditor repayments, with a potential 160% increase if approved.
FTX Token (FTT) is currently creating buzz in the crypto market as anticipation grows ahead of the October 7 court hearing concerning the repayment plans of creditors and customers. At the time of writing, the price of FTT is at $2.13, and it has increased by 64% over the last seven days, predominantly due to the positive outlook of the court, possibly agreeing to a proposal that will lead to the beginning of paybacks, thus, potentially lifting the token to a 10-month high.
The upcoming hearing is critical. Sunil Kavuri, a representative for FTX creditors, stated on X (formerly Twitter) that customers owed under $50,000 could receive payments by late 2024, while those with larger claims may wait until mid-2025. This uncertainty adds to the tension as investors react to the potential outcomes.
Santiment data shows an uptick in the token’s age-consumed metric, indicating that dormant FTT tokens are changing hands. This increase suggests growing investor activity, a positive sign as traders prepare for the hearing.
Signs of Increased Demand for FTX Token
For FTT, the Daily Active Addresses (DAA) divergence shows 25.46%, which means more unique addresses are engaging in transactions. When the price increases, it is correlated with the increase in DAA. This usually signals that the market is very interested, which might lead to the FTT’s value rising more.
FTT’s On-Balance-Volume (OBV) has also surged, reaching December 2023’s highest with a 69% increase in just four days. This sudden rise implies great buying power, which could be credited for moving the price up if the lawsuit is approved. FTT may rise above $4.91 and go as high as $5.98.
The On-Balance Volume (OBV) is a technical analysis tool that shows us the direction of the price change. It notes the flow of volume trades, thus determining which side bears more force, buyers or sellers, towards a financial instrument.
The condition is uncertain; however, suppose the hearing repudiates the payback program, and the investors will probably sell off. Thus, FTT may fall back to approximately $1.
As the October 7 meeting is near, FTX Token is at a crucial point. This case’s implications could influence the FTT price and change the perception of the broader FTX brand in the cryptocurrency market. Investors are eagerly monitoring the situation, realizing that this decision may reshape the future of FTT and the company itself.
