As a seasoned researcher with over two decades of experience in the financial markets, I must admit that the current FTT price rally is a fascinating development to observe. Having witnessed numerous market cycles and trends, I can say with some confidence that this surge could be interpreted in multiple ways.
In simple terms, the value of FTT, the digital currency associated with the troubled cryptocurrency exchange FTX, experienced a significant increase of approximately 36% over the past day, reaching an impressive peak of $2.96 earlier today. This substantial rise in FTT’s price is occurring concurrently with FTX revealing their restructuring plan, which is set to begin in January 2025.
On Thursday, November 21st, the defunct cryptocurrency exchange FTX announced that a court has given them approval for their restructuring plan. The debtors of FTX hope to finalize deals with fund distributors by December and are scheduled to begin returning funds to claimants in January 2025.
The announcement led to a significant increase in trading of FTT tokens, as many previously inactive ones were exchanged. Moreover, the data from the blockchain indicates that the number of unique FTT transactions following a year-long hiatus (dormant circulation) experienced a sharp rise, peaking at 213,350 over the past month, following the reorganization announcement made by FTX on Thursday.
- But investors have to be careful as this surge in this metric could mean either thing. This could suggest that holders are preparing to sell, potentially exerting downward pressure on the price. In the case of FTT, however, it may also signal that long-term holders are repositioning their assets in expectation of further gains.
FTX Token (FTT) Funding Rate and Price Prediction
The funding rate for FTT being positive implies that futures traders are anticipating more growth in the future. Currently, the rate stands at 0.010%. To provide some context, after FTX’s announcement on Thursday, it reached a high not seen for several months at 0.26%, but then fell back.
- The funding rate represents a periodic payment between long and short positions in perpetual futures contracts, helping align their prices with the spot market. A positive funding rate means long positions pay shorts, signaling bullish market sentiment. In the FTT futures market, this indicates that more traders are betting on continued price growth than those expecting a decline.
According to current reports, FTT is being traded at a price of 2.56 dollars. If the bulls exhibit power and the upward trend persists, the price could potentially break through the resistance level of 2.69 dollars and climb higher to reach 3 dollars. Beyond that point, it might escalate towards its predicted high for 2024, which is 3.43 dollars.
- If the previously dormant coins being moved are sent to exchanges, it could create downward pressure on FTT price. In such a scenario, the price may drop to the support level at $2.47. If this level fails to hold, FTT could see a further decline to $2.24.
Read More
- What Are Silo 18’s Tunnels Connected To? Juliette’s Silo 17?
- ARB PREDICTION. ARB cryptocurrency
- W PREDICTION. W cryptocurrency
- ZK PREDICTION. ZK cryptocurrency
- XRD PREDICTION. XRD cryptocurrency
- WWE Undisputed Champion Cody Rhodes Drops a Bombshell After His Return
- LDO PREDICTION. LDO cryptocurrency
- Is there preload for Path of Exile 2? Yes, but with a few caveats
- XVG PREDICTION. XVG cryptocurrency
- STEEM PREDICTION. STEEM cryptocurrency
2024-11-22 16:48