Newton Gitonga
Cryptocurrencies displayed bearishness on Friday as Bitcoin lost over 2% the previous day to $105,701 at press time.
While altcoins like Dogecoin, Cardano, and Sui reflected the downbeat mood with substantial price dips, FTT remained in the spotlight as the defunct FTX exchange started distributing over $5 billion to creditors today.
JUST IN: FTX to begin distributing over $5 billion in stablecoins to creditors today, with the process expected to start around 9:00 AM ET.
The native token opened the day with a bullish note, rallying from $1.2196 to a 24-hour peak of $1.3074.
FTT had tested the $1,30 mark several times in mid-May.
Consequently, it formed a double-top setup, which indicates $1.30 – $1.35 as a crucial resistance.
Bulls have failed to crack the obstacle again, and FTT retraced to hover at $1.22 during this publication.
Its trading volume has declined by nearly 3% in the past 24 hours, indicating dwindled trader interest in FTX’s native coin.
A new dawn for FTX and its creditors
The bankruptcy crypto exchange is entering a crucial phase in its recovery process.
FTX will start compensating its creditors stablecoins worth over $5 billion today, May 30.
The payout is among the highest compensations in crypto history and will target institutional investors, retail users, and creditors who incurred substantial losses after the FTX empire collapsed in November 2022.
The $5 billion release grabbed attention as among the top crypto events this week.
First and foremost, it brings a sense of closure and relief, even as the future of the exchange and its native token remains blurred.
Moreover, the massive payout will likely influence investor behavior, exchange flows, and liquidity in the near term.
FTT price outlook
FTX’s native token trades at $1.22, with its price performance reflecting uncertainty.
The altcoin anticipates surged volatility amidst creditor payments.
Meanwhile, bears appear to dominate short-term trends.
Extended dips might send FTT toward the support barrier at $1.05 – $0.95.
This region could attract buyers and trigger recoveries.
However, FTT’s fate depends on how the recipients act after receiving their assets.
Immediate selling would magnify the alt’s bearish outlook, possibly opening the downward path to $0.75.
That would translate to a nearly 40% decline from the current market price.
However, the altcoin can absorb prevailing bearishness if individuals opt to hodling.
Overpowering the hurdle at $1.30 – $1.35 will likely propel FTT to the latest peak at $1.50, beyond which it will confirm solid short-term recoveries.
Keep in mind that the native asset lacks use cases following FTX’s collapse.
Therefore, some creditors might dump the assets and quit the market entirely.
The upside path boasts multiple challenges for FTT.
The altcoin’s short-lived recoveries indicate investor uncertainty about FTX and FTT’s future.
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