The new comments made by Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), on FTX triggered a 169% surge in FTT (FTT/USDT) over the past week. Nevertheless, FTT is associated with a lot of uncertainty, as the token lacks utility and no guarantee that any relaunched FTX would use it. These uncertainties make any price predictions highly speculative, but investors will monitor the situation closely.
Last Year’s Wounds of FTX
Last year, FTX exchange filed for Chapter 11 bankruptcy protection due to a liquidity crisis surrounding its token, FTT. The platform’s leverage and solvency issues were unceremoniously exposed. This furthermore caused customers to rush to withdraw their funds and ultimately resulted in FTX being unable to serve its customers triggering a withdrawal spree. As the first anniversary of FTX’s bankruptcy filing approached, interest in the fallen trading platform has grown.
At first, the market downturn of 2022 was cited as the cause, but further inquiry uncovered that the exchange’s CEO and co-creator, Sam Bankman-Fried, had been embezzling from the exchange and improperly using customer funds by loaning them to Alameda Research, FTX’s affiliated hedge fund.
Efforts for Restoring the Platform
Caroline Ellison, the former CEO of Alameda Research, along with former FTX executives Gary Wang and Nishad Singh, have been charged with various crimes. Following the incident, John Ray III assumed the position of interim CEO to lead the efforts to restore the platform. He formed a team to evaluate the feasibility of bringing back the exchange to generate additional benefits for the creditors.
Prediction of FTT Coin Price
At press time, The FTT coin price is trading sideways in a zone after riding its uptrend. At $4.31, there is an immediate resistance level, while the immediate support level is at $2.84. Furthermore, the 50-day EMA has had a bullish crossover with the 150-day EMA in November of this year.
The current price at the 50-day EMA is $1.93 and the 150-day EMA is $1.64. In addition to this, the RSI is near the overbought level at 65 while its SMA is at 68 indicating a short-term weakness. The current market trend’s price prediction is bullish if the trendline can be maintained by the bulls.
Conclusion
Last year, FTX exchange filed for Chapter 11 bankruptcy protection due to a liquidity crisis surrounding its token, FTT. At press time, the FTT coin price has surged more than 160%, following news of the Securities and Exchange Commission (SEC) speaking in favor of FTX. While the current trend is sideways, the prediction is bullish.
Technical Levels
- Support Levels: $2.84 and $2.12
- Resistance Levels: $4.31 and $5.47
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
Source: https://www.thecoinrepublic.com/2023/11/19/ftt-coin-analysis-what-is-the-reason-for-the-169-surge/