Recent weeks have witnessed increased volatility in relation to FTX Token [FTT]. The restructuring plans of the now-defunct crypto exchange FTX received approval from the U.S. government in October.
This plan aimed at reimbursing approximately 98% of former FTX users with 119% of the claimed value.
Speculation has also arisen regarding a potential presidential pardon for the disgraced CEO of the exchange, Bankman-Fried, by Joe Biden.
With the bankruptcy proceedings scheduled for January 2025, the likelihood of FTT token volatility has further heightened.
These rumors were sparked by a post on X authored by user Wall Street Mav. Following Elon Musk’s remarks, Polymarket odds witnessed a 9% increase in the chances of a pardon.
This surge in odds has contribued to the short-term bullish momentum behind the FTX token.
FTT Revisits the $3.5 Resistance Level
Between June and July, the exchange token seemed to establish a base around the $1 range and gradually move higher in the latter part of September.
Starting from November, this upward trend has once again begun to take shape. A bullish market structure on the daily chart was reestablished on November 21st.
Subsequently, this structure has consistently remained bullish on the 1-day timeframe. Additionally, the RSI has stayed above the neutral 50 threshold for the past month, lending further support to the notion of bullish momentum behind the token.
However, the CMF has displayed a consistent reading below -0.05 for the majority of the preceding year. This indicates that the capital flows have not been consistently moving inward, casting doubt on the recent rally over the past two months.
On the CoinMarketCap page for FTX Token, a cautionary message is prominently displayed,
“The FTX bankruptcy proceedings have commenced. The FTT token may not retain its utility and could be liquidated by the estate for creditor payments. It is advised to exercise caution.”
Consequently, investors are advised to proceed with caution and refrain from engaging with the token, while traders ought to remain vigilant to news developments that could impact their positions.
Disclaimer: The information provided is the author’s opinion and does not constitute financial, investment, or trading advice.