The embattled crypto exchange FTX has sparked renewed interest in its native token, FTT, following the announcement of a court-approved restructuring plan. The token surged by 36% in a single day, reaching its monthly high of $2.61 and emerging as the top gainer among the top 100 cryptocurrencies.
FTX Restructuring Plan Fuels Market Optimism
FTX has confirmed plans to implement its restructuring framework soon, aiming to finalize arrangements with fund distributors by December and commence creditor repayments in January 2025. This announcement has triggered a significant uptick in FTT trading activity, with previously dormant tokens re-entering circulation.
On-chain data reveals that FTT Dormant Circulation reached a 30-day high of 213,350 following the announcement. This metric typically indicates that previously untouched tokens are moving, which could either signal holder readiness to sell or repositioning for further gains. In FTT’s case, the latter appears more likely as long-term holders position themselves for potential upside.
Traders Bet on Continued FTT Price Growth
FTT’s positive funding rate reflects trader confidence in sustained price growth. Currently at 0.01%, the funding rate spiked to a multi-month high of 0.26% following FTX’s announcement before stabilizing.
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The funding rate, which ensures price alignment between perpetual futures and spot markets, becomes positive when long positions dominate. This indicates a bullish sentiment, with more traders betting on price increases than declines in the FTT futures market.
FTT Price Outlook: Can the Rally Continue?
Crypto analyst Abiodun Oladokun provides a technical analysis of FTT, currently trading at $2.61. If the bullish momentum persists, the token could surpass the $2.69 resistance level, paving the way for a return to the $3 mark and potentially retesting the year-to-date high of $3.43.
However, if dormant tokens are sent to exchanges for liquidation, FTT could face downward pressure. In this scenario, support at $2.47 will be critical; failure to hold this level could result in a drop to $2.24.
What’s Next for Investors?
As The Bit Journal reports, FTX’s restructuring plan has rekindled market confidence in FTT, with on-chain activity and trader sentiment pointing to further potential gains. However, investors should remain cautious of possible downside risks from dormant token movements. For those prepared to navigate the volatility, FTT offers an intriguing opportunity in the evolving cryptocurrency landscape.
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