Table of ContentsToggle
FTX has unveiled a new proposal aimed at compensating the victims of its 2022 collapse. According to a statement released on May 7, the bankrupt crypto exchange plans to repay all creditor claims, including “billions in compensation for the time value of their investments”. This proposal is pending finalization and approval by the United States Bankruptcy Court for the District of Delaware.
The repayment plan offers a 118% recovery rate for creditors with claims of $50,000 or less, covering approximately 98% of FTX’s creditors by number. Despite the plan’s commitment to repay the asset values from the time of the company’s bankruptcy in November 2022, some creditors and industry experts argue that repayments should reflect current, higher market prices.
The FTX Debtors today filed their anticipated amended Plan of Reorganization and accompanying Disclosure Statement with the U.S. Bankruptcy Court. Read about it here https://t.co/EGmlVdWOaS below: pic.twitter.com/bwwvRolX21 — FTX (@FTX_Official) May 7, 2024
Bitcoin, for example, has surged nearly 280% since FTX’s bankruptcy, underscoring the significant market recovery. FTX CEO John J. Ray III expressed satisfaction with the proposal, which promises to return 100% of bankruptcy claim amounts plus interest for non-governmental creditors, with an estimated total value distribution between $14.5 and $16.3 billion. Despite these efforts, figures like Mike Belshe, CEO of BitGo, have criticized the plan, highlighting that the recovery does not match current market values.
FTX Token Technical Overview
The FTX Token price has seen a notable fluctuation in its recent trading sessions on the 4-hour chart. The crypto opened at a price of $1.629, followed by gradual increases to $1.6597 and a spike to $1.9421. It reached a peak at $2.0253 before slightly retracing to $1.9288. The significant increase in volumes, with a peak at approximately 17.184 million units, aligns with this upward movement, indicating a strong buyer presence during the breakout above $1.9421.
The 9 EMA and 20 EMA have consistently trended upward, with the 9 EMA at $1.7827 most recently surpassing the 20 EMA at $1.6699, which suggests a bullish market in the short term. The Moving Average Convergence Divergence (MACD) further supports this outlook, as the MACD line at 0.1046 is above the signal line at 0.0620, enhancing the bullish sentiment with a positive histogram value of 0.0426.
Moreover, the Relative Strength Index (RSI) positioned at 71.87, though slightly lower than its previous high of 82.79, remains in the overbought territory. This reflects strong buying momentum, albeit with caution due to potential overvaluation.
Key Levels to Monitor
FTT now faces immediate resistance at $1.9476, with further hurdles at $2.0085 and $2.0953. Breaking past these levels could signify continued bullish momentum, potentially challenging the recent high of $2.0253. Conversely, support levels are found at $1.9118, $1.8894, and $1.88. These marks could serve as critical cushions should the pair experience a reversal, with $1.88 as a strong psychological and technical support level.
Considering the bullish indicators and current price action, traders might consider entering long positions on dips towards support levels, particularly around $1.8894 and $1.9118, with stop-loss orders slightly below $1.88 to manage risks. The aim would be to capture potential rebounds and upward movements towards or beyond $2.0085.
For those contemplating short positions, it would be prudent to await signs of weakening momentum or bearish reversals near key resistance levels, especially around $2.0085 and $2.0953. Setting stop-loss orders slightly above these resistance levels could mitigate risks if the upward trend continues unexpectedly.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Comments