The latest filing indicates that FTX is committed to paying its creditors. The filing spurred FTT bulls since March 14.
FTX’s native token, FTT, beat the odds earlier in 2023 when it posted a rally in January. This was an unexpected outcome, given the misery the stock market was suffering. At the time of writing, FTT was attempting another rally.
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Does the new FTT rally mean there is hope for traders who took huge losses from the FTX collapse? Understanding the rally and the reasons behind it can provide important insights into FTT and its future.
FTT’s price action has been bearish since mid-January until its latest low on March 11. It has since bounced back 83% to last week’s highs.
Source: TradingView
FTT rallied significantly the last time it hit bulls in January. If that were to happen again, the $1.45 price might see some more upside at the time of writing. The chances of history repeating themselves are quite high, especially after the latest development regarding FTX.
FTX and its debtors release an important update
FTX’s debtors gave a summary presentation filed under Chapter 11. This meant that it was part of the exchange’s bankruptcy filing and highlighted FTX’s plans to facilitate payment to creditors and stakeholders.
FTX Debtors make available a summary of the Schedules and SOFAs submitted: https://t.co/Lr8PqxTHBt
— FTX (@FTX_Official) March 17, 2023
The summary presentation was published on March 17, a day before FTX bulls boosted their rally. This may indicate that traders received the update as a positive sign for FTX, hence the robust bullish volumes.
On-chain metrics recorded remarkable activity shortly after the summary presentation was published. For example, there was an increase in active deposits and active withdrawals on March 18, hours after the publication hit the headlines.
Source: Sentiment
It’s also worth noting that the supply of FTX on exchanges has been rising since March 14, leading to speculation whether FTX was planning a comeback. Others speculated it could be a move to secure liquidity to pay off creditors.
Realistic or not, here is the market cap of FTX in terms of BTC
Whatever the reason, a look at whale activity reveals some interesting observations. The supply of top addresses has grown slightly in the past seven days before an outflow was registered. The supply distribution metrics demonstrated that observation.
Source: Sentiment
Whales with more than 10 million FTT (shown by the pink line) increased their balance early last week before selling a significant amount. The same category of whales controlled more than 29% of FTT circulation at the time of going to press, hence they can have a major impact on the price. The outflow of the same whales may limit the potential benefit of FTT.
This post Can FTT Maintain Its Uptick After FTX’s New Filing? What the statistics say
was published first on https://ambcrypto.com/can-ftt-sustain-its-upswing-post-ftxs-new-filing-what-the-metrics-say/
