The price of FTX Token (FTT) surged dramatically, registering a 113% rise during an intra-day high on Sunday. This sudden spike followed false rumors regarding a potential $16 billion repayment.
The market excitement prompted FTT holders to shift their focus, with many preparing to sell off their assets. FTT’s price, however, corrected by the end of the day, closing 57% above the opening value, leaving investors wondering about its future movements.
FTX Token Goes Up
The reason behind the FTX token’s massive price rise is that it is very native to the crypto market. Rumors surrounding the beginning of repayments resulted in the rally. Investors turned bullish, as many expected FTX to start paying its creditors back from October 1, potentially bringing $16 billion into the market.
However, Sunil, the representative of the largest FTX creditors group, shut down this false rumor. In a tweet, he noted that the hearing of the repayment plan is scheduled for October 7.
However, the rise in FTX Token’s price has already brought active deposits to a ten-month high. Speculation surrounding a possible repayment plan led to increased market activity. Investors, anticipating a massive inflow of $19 billion, began transferring their holdings to exchanges, creating a spike in deposit volumes.
Fueled by fear of missing out on potential profits, this move signaled that many investors were eager to capitalize on the price surge. Despite the excitement, the increased deposits hint at caution among traders, indicating that some are positioning themselves to exit their investments at the right moment.
Read more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell
FTT Active Deposits. Source: Santiment
FTT Price Prediction: Errors to Be Fixed
On Sunday, FTX Token saw its price soar by 113% before correcting, ultimately closing 57% higher. At the time of writing, FTT is trading at $2.12, reflecting both the volatility and interest the token has garnered in recent days.
As the market cools down, FTT may find support around the $2.00 mark. A bounce from this level could push the altcoin back above the $2.20 barrier, provided market sentiment remains positive.
Read more: Who Is John J. Ray III, FTX’s New CEO?
FTT Price Analysis. Source: TradingView
However, with the planned hearing just a week away, rapid profit-taking at current prices could cause a significant downturn. Should FTT drop below its $1.90 support level, it may plummet further to $1.58, invalidating the current bullish outlook.