The native token of crypto exchange FTX, FTT, faced a sharp price drop following the court ruling on its bankruptcy case, raising significant investor concerns.

Rapid Decline of FTT Token Price

On October 7, FTT token surged by 56.80% to $3.422 ahead of the FTX bankruptcy hearing. However, following the approval of the repayment plan by the court, the price began to fall, currently reaching $2.3160, marking a 24.45% decline.

Technical Analysis of FTT Token

The FTT token's price movement in the upward channel on the hourly chart shows potential for a downward breakout, sitting at the lower range. The price is supported by the Moving Average 200 at $2.293, with remaining averages exerting downward pressure. Technical indicators like RSI and MACD support the falling trend; the signal line crossed the MACD line, while RSI dropped to 41.84 points.

Potential Liquidation Consequences

With the approval of the repayment plan, FTX assets, including the FTT token, face the potential of liquidation. A warning has been issued on CoinMarketCap, advising investors of possible liquidation. FTX announced on October 7 a full repayment of bankruptcy claims with interest for non-governmental creditors. This information is available on the Kroll page for the FTX case. FTT token, lacking utility, may see further risks if timely actions are not taken.

The future of the FTT token remains uncertain as the FTX bankruptcy situation continues to unfold. Investors should stay informed and manage their investments carefully, considering the potential liquidation of the token to meet creditor obligations.