FTT, the native token of the failed cryptocurrency exchange FTX, experienced a 36% price increase this Friday (22).
The double-digit rally in the asset’s price is fueled by the recent announcement of FTX’s reorganization plan, which is scheduled to begin in January 2025. With a growing bullish bias towards the altcoin, the token’s price could reclaim its yearly high of $3.43 and even surpass it.
FTX Reorganization Plans Increase Interest in FTT
In a press release, the now-defunct exchange confirmed that it will soon implement its court-approved reorganization plan. According to the plan, the debtors expect to finalize arrangements with fund distributors in December, with reimbursements to claimants beginning in January 2025.
The announcement triggered a surge in FTT trading activity, with previously dormant tokens now being traded. On-chain performance revealed an increase in the cryptocurrency’s Dormant Circulation.
Following the press release on Thursday (21), this metric — which measures the number of coins transacted after remaining still for at least 365 days — rose to 213,350, its highest value in the last 30 days.
FTT Dormant Circulation. Source: Santiment
A spike in Dormant Circulation usually signals that large amounts of previously untouched tokens are being moved. This may indicate that holders are preparing to sell, which could create downward pressure on the price.
In the case of FTT, it could also mean that its long-term holders are repositioning in anticipation of future gains.
In this sense, the positive funding rate indicates that its futures traders expect its price to continue rising. It currently stands at 0.010%. For context, after the FTX announcement, it rose to 0.26% before retreating.
FTT Funding Rate. Source: Coinglass
The funding rate is a periodic payment exchanged between long and short positions in perpetual futures contracts to ensure that their prices align with the spot market. When its value is positive, long positions pay short positions, indicating bullish market sentiment.
Therefore, in the futures market, more traders are betting on a sustained FTX price rise than those anticipating a price decline.
Price prediction
At the time of writing, FTT was trading at US$2.61. If the uptrend persists, the token will break resistance at $2.69, potentially reclaiming the $3 mark and even rising towards $3.43.
FTT Price Analysis. Source: TradingView
However, if the previously dormant coins that are changing hands are sent to exchanges, it will put downward pressure on the price. In this case, the asset could fall to the support at $2.47.
If this level fails to hold, the FTT price could plummet further to $2.24.
The article FTT Fires Up With Bold FTX Reorganization Plan appeared first on BeInCrypto.
