FTT Price Prediction: Can the Bankrupt Exchange's Native Token Reclaim Its Glory Days?

FTT, the native token of the bankrupt cryptocurrency exchange FTX, has experienced a 36% price surge in the past 24 hours. It now trades at a monthly high of $2.61.

FTT, the native token of the bankrupt cryptocurrency exchange FTX, has surged over 36% in the past 24 hours and is now trading at a monthly high of $2.61. The token’s price has been rallying rapidly after FTX announced plans to begin rolling out its reorganization strategy in January 2025.

With the uptrend showing no signs of slowing down, here’s a closer look at FTT’s price action and what traders can expect next.

FTT Surges as Dormant Coins Shift

FTX announced on Monday that it will begin implementing its court-approved reorganization plan, sparking a renewed interest in FTT. According to the plan, FTX debtors expect to finalize arrangements with fund distributors in December, and claimant reimbursements will begin in January 2025.

The announcement has led to a surge in FTT trading activity, with previously inactive tokens changing hands. BeInCrypto’s analysis of the altcoin’s on-chain performance reveals an increase in FTT’s Dormant Circulation.

This metric measures the number of unique coins or tokens transacted after remaining unmoved for at least 365 days. Following FTX’s press release on Thursday, this metric surged to a 30-day high of 213,350.

A spike in Dormant Circulation often signals that large amounts of previously untouched tokens are being moved. It could indicate that holders are preparing to sell, which might create downward pressure on the price. In FTT’s case, it could also mean that its long-term holders are repositioning in anticipation of further gains.

FTT Futures Traders Expect More Gains

Traders in the FTT futures market are optimistic about the token’s price continuing to rise, evidenced by the positive funding rate. As of this writing, FTT’s funding rate stands at 0.010%.

The funding rate is a periodic payment exchanged between long and short positions in perpetual futures contracts to ensure their prices align with the spot market. When its value is positive, long positions pay shorts, indicating bullish market sentiment.

Therefore, in the FTT futures market, more traders are betting on a sustained price increase than those anticipating a price decline.

FTT Price Prediction: Key Resistance and Support Levels

FTT’s price is currently facing resistance at $2.69. If the uptrend continues, breaking above this resistance will be crucial for the token to continue rallying toward the $3 price mark.

From there, FTT’s price could rally further toward its year-to-date high of $3.43. However, if the uptrend stalls, a pullback could occur, bringing support at $2.47 into play.

If this support level fails to hold, the FTT token’s price may continue to drop, potentially falling to the next support level at $2.24.