FTX token drops 16% as massive sell-off follows repayment plan

The price of FTX Token (CRYPTO:FTT) has sharply declined by 16% in just 12 hours, following a 92% rally over recent days. 

The surge was initially driven by optimism surrounding FTX’s asset compensation plan, but investor sentiment quickly shifted, leading to a major sell-off. 

According to the Delaware District Bankruptcy Court’s approval of FTX’s repayment plan, investors initially reacted positively. 

However, many holders quickly rushed to sell, locking in profits and putting downward pressure on the token’s price. 

This market shift highlights that short-term speculative trading is driving the token’s volatility. 

Based on market sentiment, investor confidence has turned from bullish to bearish, with many fearing the compensation plan may not deliver as expected. 

As a result, realised profits for FTT holders spiked as they exited their positions, leading to a broader market sell-off. 

The token’s price has now fallen to $2.46, marking a significant retreat from its earlier highs. 

Technical indicators suggest that the recent bullish momentum may be ending. 

The Relative Strength Index (RSI) shows a reversal, indicating that FTT has moved out of the overbought zone. 

This trend hints at the potential for further declines, especially as market uncertainty remains high. 

Looking ahead, FTT may test its support level at $2.20 if bearish momentum continues. 

However, if bullish sentiment returns, the token could recover to $2.74, offering a more optimistic outlook. 

Market participants should brace for continued price fluctuations, as the token’s high volatility signals ongoing instability. 

At the time of writing, the FTX Token price was $2.43.