FTT, the native token of bankrupt cryptocurrency exchange FTX, has seen its price rise by 36% in the last 24 hours. It is currently trading at a one-month high of $2.61. It is currently ranked number one among the top 100 crypto assets.
FTT’s double-digit price increase is driven by the recent announcement of FTX’s turnaround plan, which is scheduled to begin in January 2025. With a growing bullish bias towards the altcoin, the FTT token price could reclaim its year-to-date high. at $3.43 and overcame it.
FTX reorganization plans increase interest in FTT
In a Nov. 21 press release, the now-defunct organization confirmed it would soon begin implementing a court-approved reorganization plan. Under the plan, FTX debtors expect the agreement with the fund distributors to close in December, with payments to plaintiffs beginning in January 2025.
The announcement sparked a surge in FTT trading activity, with previously dormant tokens now changing hands. BeInCrypto’s analysis of altcoin on-chain performance revealed an increase in idle FTT circulation. Following FTX’s press release on Thursday, the metric, which measures the number of unique coins or tokens traded after remaining unchanged for at least 365 days, rose to a 30-day high of 213,350.
A spike in idle circulation often signals the movement of a large number of previously untouched tokens. This could indicate that holders are preparing to sell, which could put downward pressure on the price. In FTT’s case, it could also mean that long-term holders are changing positions in anticipation of further gains.
Notably, FTT’s positive funding rate indicates that its futures traders expect its price to continue to rise. At the time of writing, it is 0.010%. For context, it rose to a multi-month high of 0.26% after FTX’s announcement on Thursday before pulling back.
The funding rate is the periodic payment exchanged between long and short positions in perpetual futures contracts to ensure their prices match the spot market. When its value is positive, long positions bring profit to short ones, which indicates bullish sentiment in the market. Thus, in the FTT futures market, more traders are betting on sustained price increases than on price declines.
FTT Price Forecast: What’s Next?
At the time of writing, FTT is trading at $2.61. If the uptrend continues, the token will break through the resistance at $2.69, reclaim the $3 price mark and rise to a year-to-date high of $3.43.
However, if previously dormant coins change hands and are sent to exchanges, this will put downward pressure on the FTT price. In this case, its price may fall to support at $2.47. If this level does not hold, the price of the FTT token could fall to $2.24.
