FTX Token (FTT) saw a remarkable price increase of 113% during an intra-day high on Sunday, fueled by speculation surrounding a potential $16 billion repayment. This sudden rise encouraged many FTT holders to reconsider their positions, with some preparing to sell off their assets. By the end of the day, FTT's price corrected but still closed 57% above its opening value, sparking investor curiosity about future price movements.
The surge in FTX Token's price is closely tied to recent rumors about the commencement of repayments to creditors. Investors became optimistic, as many anticipated that FTX would start reimbursing its creditors from October 1, potentially introducing $16 billion back into the market. However, Sunil, a representative of the largest FTX creditors group, dismissed these rumors, stating that the hearing for the repayment plan is scheduled for October 7.
Despite the clarification, the excitement around the FTX Token led to a notable increase in active deposits, reaching a ten-month high. Speculation about a possible repayment plan prompted investors to transfer holdings to exchanges, resulting in a surge in deposit volumes. This behavior, driven by the fear of missing out on potential profits, indicated that many investors were eager to take advantage of the price spike. Yet, the increased deposits also suggest a cautious approach among traders, many of whom are positioning themselves to exit their investments at the opportune time.
On Sunday, FTX Token's price soared by 113% before correcting, ultimately closing 57% higher at $2.12. This reflects both the volatility and heightened interest in the token in recent days. As the market stabilizes, FTT may find support around the $2.00 mark. A rebound from this level could see the altcoin rise back above the $2.20 threshold, provided that market sentiment remains optimistic.
However, with the upcoming hearing just a week away, rapid profit-taking at current prices could lead to a significant downturn. If FTT falls below its $1.90 support level, it might decline further to $1.58, challenging the current bullish outlook.
