FTX Restructuring Plan Sparks FTT Rally: What’s Next for the Token?

Andras Crow-Hreidar
By Andras Crow-Hreidar Add a Comment
3 Min Read

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 Sparks FTT Rally: What’s Next for the Token? = The Bit Journal

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.

FTX Restructuring Plan Sparks FTT Rally: What’s Next for the Token? = The Bit Journal

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.FTX Restructuring Plan Sparks FTT Rally: What’s Next for the Token? = The Bit Journal

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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Disclaimer

The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.

You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.

Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.

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Editorial Director Hi there, my name is András and I'm a business and finance journalist living in Norway. My passion lies in uncovering the latest stories in the world of finance and delivering them to my readers in a way that's clear and engaging. I cover a wide range of topics in the finance world, including cryptocurrencies, which I believe have the potential to transform the way we interact with money and financial systems.As a journalist, I'm committed to providing my readers with accurate and reliable reporting. I believe that access to high-quality information is essential for making informed decisions, whether it's about personal finances or investments. When I'm not writing about finance, I enjoy a variety of hobbies and interests.
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