FTX’s native token, FTT, has experienced a rollercoaster of price movements, especially after recent corrections. Despite FTX having started to pay out to its creditors, the altcoin struggled to regain its position in the market over the past week.
However, there was a strong shift today, as the FTT rate rose by 44%, mainly driven by tweets from FTX founder Sam Bankman Fried (SBF).
Sam Bankman Fried shows empathy
The rise in the FTT rate was mainly driven by speculative purchases, fueled by the support of Sam Bankman-Fried’s followers in response to the news. Bankman-Fried discussed the complexity of layoffs and emphasized that they usually stem from structural problems, such as business mismatches, poor management or an unsuitable work environment, rather than individual shortcomings. While recognizing that it is sometimes necessary to lay off unproductive workers, he emphasized that such situations are often the result of failing leadership.
1) I have a lot of sympathy for gov’t employees: I, too, have not checked my email for the past few (hundred) days
And I can confirm that being unemployed is a lot less relaxing than it looks
— SBF (@SBF_FTX) February 25, 2025
Although the price rose, the Chaikin Money Flow (CMF) indicator revealed that this increase was not supported by substantial capital inflows. Instead, it was driven by sentiments surrounding SBF and the FTX situation. The CMF did not show a corresponding increase in the buying volume, indicating that the price increase was speculative and not sustainable.
Moreover, while the FTT price was rising, it became clear that investors were reluctant to commit fully to the token. The neutral reading of the CMF points to weak inflows, which reinforces the view that the price increase is likely to decline. Without strong support from actual inflows, the price may struggle to stay above current levels, and further speculative increases may become less frequent.
On a broader scale, the market momentum of FTT has been moderate. Whale addresses, which are generally seen as strong indicators of price trends, have shown minimal activity over the past two months. The net inflow of large wallet holders has remained neutral. This is an indication that even the most influential players in the market have shown little interest in the token.
This lack of involvement from large investors further supports the view that the recent increase is not driven by fundamental interest in FTT.
FTT price may not maintain its increase
FTT’s sharp 44% rise took the price to a high of $2.31 before falling back to $1.75. Despite this, it has recovered somewhat from a 32% drop earlier in the week. However, the token is still struggling to break above the $1.83 resistance.
Given the current market conditions, FTT will probably face further challenges to get above $2.00. The price could consolidate around $1.55 in the short term, as the previous resistance appears difficult to break through. However, with the current sentiment and the lack of strong investor support, a sustained rise above $2.00 remains uncertain.
If FTT can attract enough investor interest and secure $1.98 as a support level, it could rise above $2.31. If that happens, the bearish expectations could be invalidated, leading to more profits and a more promising recovery for FTT.
