FTX Token Hits $5+ After SEC Chair Declares It Could be Rebooted Under New Leadership

Bits Logics Team . 13th Nov 2023
  • FTT token saw drastic increase in price after SEC Chairs comments.
  • Former President of New York Exchange may buy FTX exchange.
  • FTT’s uptrend doesnt seem to be supported by volume, hence, it may fall in the future

FTT, the native token of the defunct cryptocurrency exchange FTX saw a drastic rise in prices during the past. As per the reports, this rise in price was a result of the SEC Chair Gary Gensler commenting that the defunct exchange could be rejuvenated under a new leadership. He stated that he would be open to a rebooted FTX — as long as it is done “within the law.”

Apparently, Tom Farley, a former president of the New York Stock Exchange, is among a short list of three bidders vying to buy what remains of the bankrupt crypto exchange. With regard to Tom’s possible acquisition, the Chair stated: “If Tom or anybody else wanted to be in this field, I would say, ‘Do it within the law,’”

FTT/USD 1-Week Chart (Source: CoinMarketCap)

Looking at the weekly chart above, it can be seen that since the ninth of November, the price of FTT increased drastically. FTT was trading at around $1.22 on November 8 but it gained value and rose to $5.3 on November 11, the highest price for the week. However, after printing its highest price, FTT is making lower highs and at press time is trading at $3.5.

FTT/USDT 1-Day Chart (Source: Tradingview)

The above chart shows that FTT token is on an uptrend and currently it is testing the trendline. If Tom takes over and manages to rebuild FTX and most importantly reconstruct the trust, then FTT has the potential to rise. In the event, the above stated scenario is validated, FTT token could retest the $4.8 resistance level. 

However, when looking at the accumulation and distribution line (ADL), the masses seems to be losing interest. The ADL reads a value of $-131M and the line seems to be going down although the price is on an uptrend. This shows a bearish divergence where the rise in price of FTT is not supported with volume. Hence, FTT could fall to $1.11 if the bears take over the market.