The post FTX Repayments Worth $16B to Begin Tomorrow—Will This Flow into Bitcoin and Altcoins? appeared first on Coinpedia Fintech News
The year 2022 witnessed a series of collapses, starting with the Terra ecosystem to the most unfamous FTX exchange. This created a series of fallouts, causing losses worth billions within the crypto markets. However, the investors are expected to get their lost funds back as the platform is going to repay them, starting from 19 February 2025. So the question arises whether this liquidity will flood into the crypto markets.
As covered previously, Bitcoin and Ethereum are facing an extreme liquidity crunch as the capital inflow has plunged over 30%. As a result, the prices have remained stuck within the range, failing to surpass the interim resistance. Therefore, the liquidity is expected to flow into the top two tokens, as there has been a significant shift of sentiments from the memecoin to the fundamentally strong tokens. Hence, retail traders can expect a rise in market volatility for the next couple of days, which could have a large impact.
How Will This Impact the FTT Price Rally?
The FTT price has begun to gain some momentum as the repayment date approaches. There was a notable rise in the volume, which soared from $22 million to $67 million and pushed the FTT price from $2.05 to $2.39 within a few hours. Although the price is facing a correction, it continues to remain under bullish influence, as a notable amount of liquidity is expected to flow into FTT too.
The FTT price held strong above the pivotal support zone between $1.91 and $1.84 and has encountered a crucial range. The price is stuck between the 50-day & 200-day MA, which has been acting as a strong resistance and support level. Moreover, they are heading for a bearish crossover or the death cross. Besides, the RSI has displayed a bearish divergence, but the ascending trend line is expected to offer a strong base.
Therefore, if the FTT price manages to stay within the parabolic curve, then the token may form an Adam and Eve pattern. With this, the price may reach the neckline around $4, which may further trigger a fresh upswing if the bulls manage to breach the resistance. While bearish possibilities appear fewer, if in case they exert more pressure, the support zone may offer a base and trigger a strong rebound within the pattern.