Can FTT sustain its upswing post FTX’s new filing? What the metrics say

• The latest filing indicates FTX’s commitment towards paying its creditors.
• The filing spurred FTT bulls since 14 March.

FTX’s native token, FTT, beat the odds earlier in 2023 when it posted a rally in January. This was an unexpected outcome, considering the woes that the exchange suffered. At press time, FTT was attempting another rally.

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Does the new FTT rally mean there is hope for traders who suffered huge losses through the FTX collapse? Understanding the rally and the reasons behind it may offer important insights into FTT and its future.

FTT’s price action had been bearish since mid-January to its latest low on 11 March. It bounced back by 83% since then to last week’s highs.

Source: TradingView

FTT achieved a sizable uptick the last time it found favor with the bulls in January. If that were to happen again, then its $1.45 press time price might be in for some more upside. The chances of history repeating are quite high, especially after the latest development regarding FTX.

FTX and its debtors issue important update

FTX’s debtors issued a summary presentation filed under Chapter 11. This meant it was part of the exchange’s bankruptcy filing and it highlighted FTX’s plans to facilitate payment to creditors and stakeholders.

FTX Debtors make available summary presentation of the filed Schedules and SOFAs: https://t.co/Lr8PqxTHBt

— FTX (@FTX_Official) March 17, 2023

The summary presentation was published on 17 March, a day before FTX bulls supercharged their rally. This may indicate that traders received the update as a positive sign for FTX, thus the robust bullish volumes.

On-chain metrics registered noteworthy activity shortly after the summary presentation was published. For example, there was a surge in active deposits and active withdrawals on 18 March, hours after the publication made headlines.

Source: Santiment

It is also worth noting that the supply of FTX on exchanges rose since 14 March, leading to speculation whether FTX was planning to make a comeback. Others speculated that it could be a move aimed at securing liquidity to pay off creditors.

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Whatever the reason, a look at whale activity reveals some interesting observations. The supply held by top addresses grew slightly in the last seven days before registering outflows. The supply distribution metric demonstrated that observation.

Source: Santiment

Whales holding over 10 million FTT (represented by the pink line) increased their balances early last week before selling off a substantial amount. The same category of whales controlled over 29% of FTT’s circulation at press time, hence they may have a large impact on the price. The outflows from the same whales may limit FTT’s potential upside.