FTX token (FTT) price continues to face a challenging period following the fiasco that took place in 2022. Meanwhile, FTX’s founder Sam Bankman-Fried (SBF) is awaiting his trial set for March.
Current Status of FTX
According to a report published by Reuters, ongoing bankruptcy proceedings for the FTX exchange are in progress, with efforts to treat customers as a whole being emphasized.
The report indicates that the exchange is liquidating assets to reach an agreement with creditors. The possibility of restarting the exchange has been shelved, with liquidation and reaching an agreement with customers now seen as a better alternative.
Although reuniting customers as a whole is considered a positive step, it also presents its own set of challenges.
The exchange announced in November 2022 that customers would be reimbursed based on the USD value of their assets. If this occurs, users will receive refunds based on the prices of Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) at the time they were trading at $18,000, $1,300, and $18, respectively.
The exchange’s decision was made after months of discussions with potential bidders and investors. It appears that none of the bidders were willing to offer enough money to revive the FTX exchange.
FTX attorney Andy Dietderich confirmed the situation during a bankruptcy court hearing in Delaware, based on the report shared. Additionally, the decision to reimburse customers could set a precedent for handling bankruptcies and customer reimbursements in the crypto industry.
Interestingly, following the news, the FTX token price surged by 42%, rising from $2.60 to $3.25, but then fell back to $2.30.
Current Status of FTT Token
An analysis suggests that the FTT price, caught between the 50 and 100-day Simple Moving Averages (SMA) at $3.12 and a horizontal line at $2.83, could be more prone to a decline. The Relative Strength Index (RSI) is also continuing its downward trend, indicating a drop in buying momentum.
The FTX token price may soon retest the $2 psychological level. Both the Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD) being in the negative zone support the bearish thesis.
On the other hand, if bulls find a buying opportunity at what could be considered a bottom level, the FTT price could start moving towards overcoming the $2.83 and $3.12 levels respectively.
