Why Did FTX Token (FTT) Price Crash 16% in 12 Hours?
The post Why Did FTX Token (FTT) Price Crash 16% in 12 Hours? appeared on BitcoinEthereumNews.com.
FTX Token (FTT) price has faced a sharp downturn, losing 16% of its value in just 12 hours. This comes after a 92% rally over the past few days, fueled by optimism surrounding FTX’s asset compensation plan. Investors initially reacted positively, but sentiment quickly shifted. The Delaware District Bankruptcy Court’s approval of FTX’s plan prompted many to lock in profits, putting downward pressure on the token’s price. This volatility seen in FTT’s price suggests that short-term market moves are being driven by speculative trades. FTX Token Holders Turn Bearish Realized profits for FTT holders have spiked significantly in the last 24 hours as many rushed to sell their holdings. The rally, once driven by speculation over asset compensation, has now turned into a wave of profit-taking. Even though FTX’s assets have not yet been distributed among creditors, FTT holders are preemptively cashing out, fearing that the compensation plan may not be as favorable as initially hoped. This selling pressure has led to a dramatic drop in the token’s value. The price drop signals a broader shift in investor sentiment. With many locking in their gains, the market has turned bearish. The anticipation that the FTX compensation plan would provide substantial relief to token holders initially fueled the rally, but skepticism has since overtaken the market. As a result, the ongoing sell-off could push FTT prices lower, especially if the broader cryptocurrency market remains volatile. Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell FTT Realized Profits. Source: Santiment On a macro level, the overall momentum for FTT is beginning to weaken. Technical indicators like the Relative Strength Index (RSI) suggest a reversal in trend. The RSI, which had previously reached the overbought zone, is now falling back, indicating that the bullish phase may be coming to an end. This shift could…
Filed under: News - @ October 8, 2024 7:23 am