FTT price has gone vertical even as FTX remains a bankrupt company.
The rally shows the disconnect between fundamentals and valuation.
FTX Token is rising as investors react to the interest of FTX assets.
FTX Token came back to life this week as investors continued focusing on the ongoing bankruptcy proceedings. FTT, the network’s token, soared to a high of $1.5867, the highest point since December 11. It has soared by more than 60% from the lowest point in December, giving it a market cap of over $427 million.
Why is FTT soaring?
FTX Token was the native token for the FTX platform, the company that collapsed in November. Unlike other complex exchange tokens like Uniswap and BNB Coin, FTX had no major use other than provide discounts for users in its website.
FTX Token, like Voyager Token and Celsius, has continued to trade even after the parent company filed for bankruptcy in 2023. Therefore, the recent price action is mostly because of speculation among day traders.&
A likely reason why FTT price is rising is that some investors anticipate that some of FTX’s assets will be acquired. Bankruptcy filings show that more than 100 entities are interested in some FTX businesses. Some of the companies that are expected to find bids from companies are LedgerX, FTX Japan, FTX Europe, and Embed.&
Still, these companies will likely have no major impact on FTX Token. The only sale that would have an impact is FTX.com. Such a bid will likely not happen because of how Sam Bankman-Fried (SBF) operated the business.&
Media reports showed that the company kept no record-keeping and did accounting using QuickBooks. QuickBooks is a software developed for small businesses.
Another reason why the FTX Token is doing well is because of its thinly-traded nature. With other coins rising, it has jumped because of how closely correlated they are. In most periods, thinly-traded assets tend to show more price action than other major ones.
FTX Token price forecast
FTX Token chart by TradingView
The 4H chart shows that the FTT price has been in a strong bullish trend in the past few days. It then went parabolic on Monday as other cryptocurrencies rallied. The coin has surged above all moving averages while the Relative Strength Index (RSI) has moved above the overbought level. The coin is forming a bullish flag or pennant patterns.
Therefore, the FTT price will likely have a bullish breakout in the coming days. If this happens, it will likely have a bullish breakout to $2. On the other hand, a drop below the support at $1.20 will invalidate the bullish view.
How to buy FTX Token
Binance
Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600. Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies. Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
The post Here’s why the FTX Token (FTT) price is soaring appeared first on CoinJournal.
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