FTT Surges 36% as FTX Unveils Bold Reorganization Plan

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As a seasoned researcher with years of experience in the ever-volatile world of cryptocurrencies, I must admit that the recent surge in FTT’s price has piqued my curiosity. Having witnessed numerous market fluctuations, I have learned to never underestimate the power of investor sentiment and the impact of key announcements like FTX’s reorganization plan.

As an analyst, I’m observing a significant uptrend in the value of FTT, the token associated with the cryptocurrency exchange FTX. In just the last 24 hours, its price has soared by 36%. At this moment, it’s trading at a monthly peak of $2.61. Notably, among the top 100 crypto assets, FTT is leading as the top daily gainer.

The significant increase in FTT’s price by double digits is largely due to the recent disclosure of FTX’s restructuring strategy set to commence in January 2025. As optimism about the altcoin continues to build, there’s a strong possibility that the FTT token will surpass its current year-to-date peak of $3.43 and potentially soar even higher.

FTX’s Reorganization Plans Boost Interest in FTT

In a press release dated November 21st, FTX, now defunct, announced that it would soon activate its court-approved recovery plan. As per the plan, FTX debtors aim to finalize deals with fund distributors by December, with reimbursements to claimants slated to start from January 2025.

The announcement spurred a rise in FTT trades, as previously dormant tokens are now being traded. Our analysis of the altcoin’s activity has shown that the Dormant Circulation of FTT has risen significantly, reaching a 30-day peak of 213,350 after FTX announced its latest news on Thursday. This metric indicates the number of unique coins or tokens transacted after being inactive for at least a year.

A surge in Dormant Token Transactions often hints at a significant shift where dormant tokens are being activated for movement. This might imply that token holders are planning to sell, potentially leading to price decreases. For FTT specifically, it could also suggest that long-term investors are adjusting their positions in anticipation of future price increases.

Significantly, the funding rate for FTT is currently positive, suggesting that traders anticipate its future price increase. Currently, it’s at 0.010%. To provide some perspective, after FTX’s announcement on Thursday, it surged to a high not seen in months at 0.26%, before experiencing a pullback.

As an analyst, I would express this concept as follows: In the realm of perpetual futures contracts, the funding rate serves as a recurring payment system between long and short position holders to maintain price parity with the current market value, also known as the spot market. When the funding rate is positive, it signifies that long positions are making payments to shorts, which indicates a prevailing bullish outlook among traders. This implies that more traders in the FTT futures market are speculating on an extended price increase rather than predicting a price decrease.

FTT Price Prediction: What Way Now?

Currently, FTT is priced at $2.61. If the upward trend continues, it could surpass resistance at $2.69, regain the $3 level, and potentially reach its highest point this year at $3.43.

If coins previously not in use are transferred to exchanges, it could potentially lower the cost of Fantom (FTT). In such a scenario, the FTT’s value might drop towards the support level at $2.47. If this support fails to maintain the price, the FTT token could see further declines, potentially reaching $2.24.

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2024-11-22 14:03