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The FTX token price jumped 12% in the last 24 hours to trade for $2.60 as of 4:30 a.m. EST time on trading volume that skyrocketed almost 300%.
It comes amid revitalized chatter around FTX after the exchange sold nearly $1 billion of the Grayscale Bitcoin Trust (GBTC) exchange-traded funds (ETF). A person familiar with the matter told CoinDesk that the lion’s share of outflows from Grayscale was FTX’s bankruptcy estate dumping 22 million shares worth the aforementioned amount.
SCOOP: @FTX_Official sold about $1 billion of @Grayscale‘s $GBTC since #bitcoinETF approval – explaining a large chunk of its outflow.@IanAllison123 reportshttps://t.co/9t04mPvFhT
— CoinDesk (@CoinDesk) January 22, 2024
In principle, with FTX done selling its sizeable holdings, constituting a third of total Grayscale Bitcoin Trust outflows, analysts anticipate easing selling pressure.
Wait, if $1bn of the selling in GBTC was FTX LIQUIDATORS as reported, that is 1/3 of the total outflows. That changes the entire picture!!!! That selling is now done.
We could actually get a bounce now and that could trigger a short squeeze.
— Ran Neuner (@cryptomanran) January 22, 2024
FTX was likely capitalizing on the difference between the price of GBTC shares and the net asset value of the underlying BTC in the trust. According to a filing dated November 3, 2023, FTX held up to 22.3 million GBTC shares, worth around $597 million as of October 25, 2023.
After the landmark approval of spot BTC ETFs on January 11, the value of these shares nearly doubled to around $900 million, closing the trading session at $40.69 per share.
Hypothesis confirmed…#FTX Sold 22 million shares worth $900m of #Grayscale‘s #Bitcoin #ETF
FTX had 22.3 million $GBTC, (valued @ $600m on Oct. 25 23)
Good for #FTX creditors, bad for short term #BTC price & #GBTC, good for those that buy dips & value their wealth in #Bitcoin https://t.co/pzWCLjuwZ0
— Simon Dixon (@SimonDixonTwitt) January 22, 2024
With hopes of creditor settlement spanning social media, the FTX token, FTT surged nearly 12% even as claims rose to 80 cents on the dollar.
Hopes of creditor repayments stirred $FTT, the tokens of the now-defunct FTX exchange, higher by 11%, with claims rising to 80 cents on the dollar. By @shauryamalwa.https://t.co/Jdc7zXHjth
— CoinDesk (@CoinDesk) January 23, 2024
FTX Token Price Outlook With Exchange Creditors Showing Renewed Hope
The FTX token price has been consolidating around the critical support at $2.83. This is after actualizing a rising wedge pattern and confirming its bearish target objective with nearly 50% in dump. With abounding overhead pressure indicated by the 100- and 50-day Simple Moving Averages, there could be a delay in the potential climb for FTX token price.
In addition, the Relative Strength Index (RSI) appears subdued, moving horizontally with an inclination to the south. This shows momentum continues to fall. The position of the RSI below 50 also points to weak price strength, further accentuating the bearish thesis.
The Moving Average Convergence Divergence (MACD) is also moving horizontally in negative territory, increasing the odds for the bears.
If the bulls fail to take over the FTT market, the bears could take charge, sending the FTX token price south. This could see the altcoin’s price test the $2.00 psychological level. In the dire case, the slump could send the altcoin nearly 65% below current levels to the support floor at $0.98.
TradingView: FTT/USDT 1-day chart
Converse Case
Increased buying pressure above current levels could see the FTX Token price overcome the $2.83 resistance level. Past this, it could confront the 100-day SMA at $2.99. Further north, the gains could see the FTT price test the 50-day SMA at $3.46. Above this, the path would be clear for the FTX Token price to target the $4.00 psychological level.
In the highly bullish case, the gains could see the FTX Token price shatter past the $5.00 psychological level. Beyond here, it could reclaim the $5.59 resistance level, last tested on December 13.
The highly ambitious case would concern the altcoin’s market value flipping this barricade into support. This could see it serve as the jumping-off point to target the $6.48 resistance level, last seen in November 2022 before Sam Bankman-Fried’s crypto empire crumbled.
However, as the FTT bulls fight to push the FTX token price towards reclaiming the pre-FTX crash highs, investors are turning to LPX, which experts say is arguably the best AI crypto coin to invest in now.
Promising Alternative To FTX Token
LPX is the native crypto for the Launchpad XYZ ecosystem. This is a project that helps community members find the next 10X trades. The project helps community members to become winners by revealing the secrets of Web3 crypto trading.
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— Launchpad.xyz (@launchpadlpx) January 19, 2024
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— Launchpad.xyz (@launchpadlpx) January 17, 2024
Launchpad XYZ is in the presale stage, with over $2.709 million already in the bag as investors buy LPX for $0.0445. With the presale ending in less than a day, interested investors have no time to lose.
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