FTX token shocked many traders with its last-minute surge. Although it saw small gains during the week, trading actions in the last 24 hours left many stunned.
The asset opened the day trading at $1.40. However, it saw a sudden shoot to the top. If flipped, several resistance levels, including the first pivot resistance at $1.58 and the second pivot support at $1.88. The surge continued when it flipped the fifth pivot resistance at $2.62.
It attempted the $3 barrier but lost momentum as it edged close to the mark. Nonetheless, it peaked at $2.94 and was up by over 110% before selling congestion resumed. The bears started taking profit, sending prices sinking.
Why FTX Token Surged
The cause for the latest surge was previous hopes that the FTX payout would start on September 30. Many creditors looked forward to the last day of the month, expecting an announcement that the bankrupt exchange was already paying out.
However, this did not happen as the firm has yet to finalize the payment date. New information suggests that the payout may come sooner than many anticipated. The official committee of FTX’s unsecured creditors bargained with the debtors to allow creditors to vote on the following actions after considering a new payment plan: date value of creditor claims and distributions.
Recent developments in the firm’s bankruptcy case have sparked intense debate and concern among creditors. Sunil Kavuri, an FTX creditor, shared new bankruptcy documents revealing that creditors will receive only 10-15% of their crypto holdings.
This payout is based on cryptocurrency values at the time of FTX’s bankruptcy filing, when prices were much lower, with Bitcoin priced at around $16,000. Many creditors are disheartened following the under-compensation, especially considering the recent rise in the price of most cryptocurrencies.
The exchange is yet to communicate its new payment amidst the latest developments. The drop in the value creditors may get back may also be the reason for the sudden drop after the peak.
WIF Maintains Seven-Day Streak
Dogwifhat continues its uptrend amidst the growing bearish sentiment across the crypto market. The latest surge took it to a price level it hasn’t seen since July. It opened trading at $2.36 but retraced to $2.25 as the selling pressure mounted. However, the bull regained control, causing a sharp price rise. WIF peaked at $2.57 as it failed in its bid to flip $2.60.
It faced corrections and is exchanging at $2.43 at the time of writing. Currently up by almost 3%, WIF may close the seventh consecutive day with significant gains. The asset also saw a significant bullish push during the previous intraday session, gaining over 4%. Nonetheless, it is up by over 44% on the weekly.
Despite the massive gains, indicators are turning bearish. One such indicator is the relative strength index. The metric is at 77, marking its fourth consecutive day above 70. WIF is overbought and due for corrections. Current price actions suggest that the decline may be on the horizon.
The asset also broke out of the Bollinger band on Tuesday, and the altcoin has since traded above it. Such price moves indicate an impending trend reversal. The reading from this indicator also reflects on the momentum indicator, as it no longer sees the same trajectory.
With all metrics pointing at further declines, it may start in the next 24 hours. The Fibonacci retracement levels reveal several key levels to watch. One such is the 23% Fib level at $2.32. While previous price movement suggests a significant demand concentration around this mark, it may fail.
Prices may sink further, and the bulls will look to halt the downtrend at the 38% level. WIF rebounded off the $2.19 barrier recently and may do the same. Failure to maintain trading above it may send prices as low as $2.
