FTT Price Prediction: Token Tumbles 16% as Investors Turn Bearish on FTX Compensation Plan

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

FTX Token (FTT) price sharply declined on Tuesday, losing 16% of its value in just 12 hours. This downturn comes after a 92% rally over the past few days, largely driven by optimism surrounding FTX’s asset compensation plan.

Initially, investors reacted positively to the Delaware District Bankruptcy Court’s approval of FTX’s plan, prompting many to lock in profits. However, as the token’s price continued to plummet, realized profits for FTT holders spiked significantly in the last 24 hours, indicating that many rushed to sell their holdings en masse.

This volatility in FTT’s price suggests that shorter-term market moves are being driven by speculative trades, particularly in response to the recent news and developments.

FTX Token Holders Turn Bearish

The recent rally, once driven by speculation over asset compensation, has now turned into a wave of profit-taking, with many FTT holders cashing out. Despite FTX’s assets yet to be distributed among creditors, FTT holders are preemptively reacting to the court’s approval of the plan.

FTT holders appear to be cashing out quickly, fearing that the compensation plan may not be as favorable as they had hoped. This selling pressure has led to a dramatic drop in the token’s value.

The price drop also signals a broader shift in investor sentiment, with many turning bearish as they secure their gains. Anticipation that the FTX compensation plan would provide substantial relief to token holders initially fueled the rally, but skepticism has since gripped the market.

As a result, the ongoing sell-off could push FTT prices lower, especially if the broader crypto market remains volatile.

Relative Strength Index Hints At Trend Reversal

On a macro level, the overall momentum for FTT is beginning to weaken. Technical indicators, like the Relative Strength Index (RSI), suggest a potential 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 mark the beginning of a bearish downtrend, particularly as more investors look to secure their profits.

Additionally, FTT’s high volatility signals further price fluctuations. The massive intra-day price swings show that traders are actively responding to news and market developments. Given the broader market uncertainty, investors should prepare for continued price instability in the short term.

FTT Price Prediction: Support Ahead

FTT experienced a 93% surge over the last few days, driven by speculation around FTX’s asset compensation plan. However, investor sentiment turned from bullish to skeptical as the court hearing approached. This shift led to the token’s recent sell-off, as holders feared potential downsides in the plan’s execution.

In the past 12 hours, FTT's price plummeted by 16%, with the token now trading at $2.46. The price whiplash on Tuesday, where FTT rose 40% intra-day only to crash 17%, highlights the high volatility in the market. Such erratic price behavior may continue as investor sentiment fluctuates.

Looking ahead, FTT could continue its downtrend, possibly testing the support level at $2.20. However, if bullish momentum returns, the token could recover, potentially rising to $2.74. Breaching this level would invalidate the bearish outlook, offering a renewed sense of optimism for FTT holders.

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