FTX revival: Bulls and bears in tug-of-war as FTT’s future uncertain

– FTT’s weighted sentiments and exchange outflow surged lately. 

– A few metrics were bullish, but market indicators suggested the possibility of high selling pressure. 

As rumors spread about the revival of the bankrupt crypto exchange FTX [FTT], its native token also showed signs of recovery. Twitter was flooded with opinions regarding the state of FTT and its future. Inasmuch, Santiment’s data revealed that a considerable number of new addresses were created over the last two days. 

😮 Call them just rumors for now, but $FTT, the native token for @FTX_Official, has had surprising on-chain activity. Following news that $7.3B has been recovered & an actual possibility of restarting #FTX, activity is at its highest since the collapse. https://t.co/iGyewcAHKZ pic.twitter.com/DBNSPLoX4S

— Santiment (@santimentfeed) April 13, 2023

Read Bitcoin’s [BTC] Price Prediction 2023-24

A quick prologue of the FTX episode

For starters, FTX has recently recovered assets worth $7.3 billion. There were also chances that the bankrupt crypto exchange might resume operations by the second quarter of 2024.

FTX attorney Andy Dietderich claimed that following months of work spent gathering resources and figuring out what went wrong under the direction of accused ex-founder Sam Bankman-Fried “SBF,” the company has now started to think about its future.

FTT was quick to respond

As soon as the news broke, FTT’s price surged considerably and even crossed the 100% mark. However, things then cooled down as FTT registered losses. According to CoinMarketCap, FTT was down by nearly 20% in the last 24 hours. At the time of writing, it was trading at $1.93, with a market capitalization of more than $636 million.

However, the situation looked fine for FTT on its metrics front. For starters, FTT’s weighted sentiments registered a massive uptick. The exchange outflow also spiked considerably, which is a bullish signal. In addition to that, CryptoQuant’s data revealed that after a sudden hike, FTT’s exchange reserve declined, suggesting a decline in selling pressure. 

Source: Santiment

Total holders increased, but here is the catch

Another positive sign was an increase in the graph mapping the total number of FTT token holders. A hike in the metric suggested increased confidence among investors in the token. Nonetheless, it was surprising to see that there was a rise in FTT’s total supply on exchanges and a decline in the supply outside of exchanges. 

Source: Santiment

Realistic or not, here’s FTT market cap in BTC’s terms

Caution is advised 

Though a few of the metrics looked bullish, FTT’s daily chart painted an ambiguous picture. For instance, the MACD suggested a massive bullish upper hand in the market. FTT’s Exponential Moving Average (EMA) Ribbon displayed the possibility of a bullish crossover in the near term.

However, FTT’s Money Flow Index (MFI) was in the overbought zone, which can increase selling pressure. The token’s Relative Strength Index (RSI) also registered a downtick, which looked bearish. 

Source: TradingView