The price of FTT token, the native token of the bankrupt cryptocurrency exchange FTX, has surged 36% in the past 24 hours. It is now trading at a monthly high of $2.61. It currently ranks as the highest gainer among the top 100 crypto assets.
The double-digit surge in FTT price is being driven by the recent announcement of FTX’s reorganization plan, which is set to begin in January 2025. With the bullish bias towards the altcoin growing, the FTT token price could reclaim and surpass its year-to-date high of $3.43.
FTX Reorganization Plans Boost Interest in FTT
In a press release dated November 21, the defunct company confirmed that it will soon implement a court-approved reorganization plan. According to the plan, FTX’s creditors expect to finalize arrangements with fund distributors in December, with claimants’ compensation set to begin in January 2025.
The announcement has led to a surge in FTT trading activity, with previously inactive tokens now trading. An analysis of the altcoin’s on-chain performance has revealed an increase in FTT idle turnover. Following FTX’s press release on Thursday, this metric — which measures the number of unique coins or tokens that have been in circulation after being inactive for at least 365 days — surged to a 30-day high of 213,350.
High idle turnover often indicates that large amounts of previously untouched tokens are being moved. This could indicate that holders are preparing to sell, which could put downward pressure on the price. In the case of FTT, it could also mean that long-term holders are repositioning in anticipation of further gains.
It’s worth noting that FTT’s positive funding rate indicates that futures traders expect its price to continue to grow. At the time of writing, it stands at 0.010%. For context, after FTX’s announcement on Thursday, it rose to a multi-month high of 0.26% before pulling back.
The funding rate is a periodic payment that is exchanged between long and short positions in perpetual futures contracts to ensure that their prices are in line with the spot market. When its value is positive, long positions pay short positions, indicating a bullish market sentiment. Therefore, in the FTT futures market, more traders are betting on the price continuing to rise than those who expect the price to fall.
FTT Price Prediction: What's the Trend Now?
As of writing, FTT is trading at $2.61. If the uptrend continues, the token will break the resistance at $2.69, reclaim the $3 price mark, and head towards its YTD high of $3.43.
However, if the previously dormant coins that are currently being traded are sent to exchanges, it will put downward pressure on the FTT price. In this case, its price may drop to the support at $2.47. If this level fails to hold, the FTT token price may drop further to $2.24.