FTT, the native token of the bankrupt FTX exchange, surged 36% to a high of $2.96, following FTX’s court-approved reorganization plan.
FTT, the native cryptocurrency of bankrupt crypto exchange FTX, surged by a staggering 36% in the last 24 hours shooting all the way to the high of $2.96 earlier today. This massive FTT price rally comes against the backdrop of crypto exchange FTX announcing its reorganization plan, scheduled to kickstart in January 2025.
On Thursday, November 21, the defunct crypto exchange FTX confirmed that it has secured the court’s approval for its reorganization plan. FTX debtors plan to finalize agreements with fund distributors in December and will start the claimant reimbursements in January 2025.
This announcement was enough to trigger a massive spurt in the FTT trading activity with several inactive tokens changing hands. Additionally, the on-chain metric shows a surge in FTT’s Dormant Circulation, which measures the number of unique coin transactions after staying idle for 365 days. Following the FTX reorganization announcement on Thursday, the FTT Dormant Circulation climbed to a 30-day high of 213,350.
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Photo: Santiment
- But investors have to be careful as this surge in this metric could mean either thing. This could suggest that holders are preparing to sell, potentially exerting downward pressure on the price. In the case of FTT, however, it may also signal that long-term holders are repositioning their assets in expectation of further gains.
FTX Token (FTT) Funding Rate and Price Prediction
The positive funding rate for FTT suggests that the futures traders are betting on further growth ahead. As of now, the rate is at 0.010%. For context, following FTX’s announcement on Thursday, it surged to a multi-month high of 0.26% before pulling back.
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Photo: Coinglass
- The funding rate represents a periodic payment between long and short positions in perpetual futures contracts, helping align their prices with the spot market. A positive funding rate means long positions pay shorts, signaling bullish market sentiment. In the FTT futures market, this indicates that more traders are betting on continued price growth than those expecting a decline.
As of press time, the FTT token is trading at $2.56. If the bulls show strength and the uptrend continues, the price can break above the resistance of $2.69 and surge further to $3, crossing which it can rally to its 2024 high of $3.43.
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Photo: TradingView
- If the previously dormant coins being moved are sent to exchanges, it could create downward pressure on FTT price. In such a scenario, the price may drop to the support level at $2.47. If this level fails to hold, FTT could see a further decline to $2.24.
