FTX Lawsuit Progresses as Crypto Market Retreats from Brief Rally
The cryptocurrency market experienced a pullback after a short-lived rally, with Bitcoin and Ethereum leading the decline. Meanwhile, the FTX lawsuit continues to advance, adding to the market's volatility. Below is a detailed summary of the recent developments.
Cryptocurrency Market Retreats After Brief Rally, FTX Lawsuit Advances
The cryptocurrency market relinquished recent gains, sliding more than 2% after failing to sustain momentum above the $4 trillion threshold. Bitcoin's attempted rally stalled near $122,000—just shy of its all-time high—before reversing sharply. The dominant cryptocurrency now trades around $118,700, marking a 3% decline.
Ethereum mirrored the downturn, retreating from $4,300 to $4,292 as profit-taking emerged. Altcoins suffered deeper losses: Solana plunged 6% to $175, while Ripple and Cardano dropped 4% and 5.5% respectively. The bearish sentiment swept across mid-cap tokens including Chainlink, Polkadot, and Litecoin.
Separately, FTX creditors escalated legal action against law firm Fenwick & West, alleging newly uncovered evidence ties the firm to the exchange's collapse. The amended complaint cites findings from Sam Bankman-Fried's criminal trial and ongoing bankruptcy investigations.
FTX Token (FTT) Breaks Key Resistance Amid Bullish Technical Signals
FTX Token surged 3.6% to $0.97, decisively breaking above short-term moving averages as MACD indicators flashed bullish. The MOVE marks a technical breakout after weeks of consolidation, with no fundamental catalysts driving the action.
RSI levels at 56.42 suggest room for further upside before overbought conditions emerge. Traders appear focused on clean chart patterns in the absence of market-moving news, creating ideal conditions for momentum plays.
The MACD crossover particularly stands out, with the momentum indicator confirming strength behind the breakout. Such technical alignments often precede continuation rallies in crypto assets.
