FTT Price Skyrockets by 44% as SBF Shows Empathy, But Can It Be Sustained?

FTX's native token, FTT, has been experiencing a rollercoaster of price action, particularly following recent corrections.

FTX’s native token, FTT, has seen a wild ride in price action, especially after recent corrections. Even as FTX began making payouts to its creditors, the altcoin encountered difficulties in regaining its footing in the market over the past week.

However, the narrative shifted drastically on March 8 as the price of FTT surged by 44%, largely influenced by tweets from FTX founder Sam Bankman-Fried (SBF).

FTT’s price rally was mainly driven by speculative buying, with supporters of SBF rallying around the news. In his tweets, SBF discussed the challenges of firing employees, highlighting that layoffs often occur due to company mismatches, poor management, or unsuitable environments, rather than individual shortcomings. He acknowledged the need to fire employees who are not productive, but emphasized that it’s often a failure of leadership.

Despite the price rally, the Chaikin Money Flow (CMF) indicator revealed that this uptick was not supported by significant capital inflows. Instead, it was largely fueled by the sentiment surrounding SBF and the FTX situation. The CMF failed to show a corresponding increase in buying volume, suggesting that the price rise was speculative and not sustainable.

Moreover, as the price of FTT surged, it became clear that investors were still hesitant to fully commit to the token. The CMF’s neutral reading points to weak inflows, reinforcing the view that the price rally is likely to fizzle out. Without substantial support from actual inflows, the price may struggle to hold above current levels, and further speculative rallies may become less frequent.

On a broader scale, the market momentum of FTT has been lackluster. Whale addresses, usually seen as strong indicators of price trends, have exhibited minimal activity over the last two months. The net flows of large wallet holders have remained neutral. This is an indication that even the most influential players in the market have shown little interest in the token.

This lack of engagement from major investors further supports the view that the recent rally is not driven by fundamental interest in FTT.

FTT’s sharp rise by 44% brought the price to a high of $2.31 before it retraced to $1.75. Despite this, it has managed to somewhat recover from a 32% decline seen earlier in the week. However, the token is still struggling to break above the resistance of $1.83.

Given the current market conditions, FTT is likely to face further challenges in pushing above the $2.00 mark. The price may consolidate around $1.55 in the short term, as the previous resistance proves difficult to breach. However, with the current sentiment and lack of strong investor backing, a sustained rally beyond $2.00 remains uncertain.

If FTT can garner enough investor interest and secure $1.98 as a support level, it could push beyond $2.31. If that happens, the bearish outlook could be invalidated, leading to further gains and a more promising recovery for FTT.