FTX Token (FTT) has erupted with a 20.40% surge over the past 24 hours, now trading at $2.40.
For a token that was left for dead after FTX’s collapse, this rally might seem like a long shot—but crypto is nothing if not unpredictable. So, what’s behind this sudden spike? And more importantly, where does FTT go from here?
FTX bankruptcy speculation
The sudden boost in FTT’s price can be traced back to mounting speculation surrounding FTX’s bankruptcy proceedings. Social media chatter suggests that FTX may begin distributing funds to creditors and customers, which has lit a fire under FTT.
Although rumors suggested payouts might start as early as September 30, that date has passed without any action. However, hope remains alive with a pivotal court hearing set for October 7.
If approved, smaller claims (under $50,000) could see payouts begin by the end of 2024, while larger claims might take until 2025.
AI predicts FTT’s next move
Now, here’s where it gets even more interesting. According to AI-based predictions from PricePredictions, FTT is expected to hit $2.65 by October 31, 2024, up from its current price of $2.40.
That’s a potential 10.42% increase in the coming weeks—if the AI’s forecast holds true.
FTT’s story is one of extreme highs and lows. In 2021, the token soared to nearly $80, riding high on FTX’s dominance. But when the exchange collapsed in November 2022, FTT plummeted, falling below $2 after Binance—one of its largest holders—sold its entire position.
Despite the chaos, FTT has gained renewed interest, with its market cap rocketing from $472 million to $789 million over the past week.
Technically, FTT is holding support at $1.83, with the next resistance level looming at $2.58. Breaking past this resistance could unlock more upside for the token, especially if the October 7 court hearing goes in favor of FTX’s restructuring plan.
October 7: A date with destiny for FTT holders
October 7 will be a pivotal day for FTT holders. That’s when the court will decide whether FTX’s restructuring plan can move forward. If the plan is approved, the market could see significant liquidity injections as creditor payouts begin.
Analysts like Su Zhu from Three Arrows Capital have suggested that even partial reimbursements could provide a much-needed boost to the crypto market, benefiting assets like FTT and Bitcoin.
Still big even if not the full amount
— 朱溯 🐂 (3/AC) (@zhusu) September 29, 2024
Forbes shares this sentiment, recently pointing out that the combination of FTX’s bankruptcy distributions, SEC approvals for IBIT options trading, and monetary easing by global central banks could set the stage for a Q4 crypto rally. FTT may be positioned to ride that wave, especially if market optimism holds.
