FTT Token Price is Soaring Ahead of FTX Bankruptcy: Here’s Why

The FTX Token price has emerged as one of the top-performing cryptocurrencies in the crypto industry. FTT surged to a high of $2.7, the highest point since November. It has rallied by over 239% from its lowest level in 2022.

Why is FTT surging?

There are two main reasons why the FTT token has been in a strong bullish trend in the past few days. First, FTX has jumped as other cryptocurrencies rise. Bitcoin, the biggest cryptocurrency in the world, has surged above $21,000 for the first time in months. As a result, other coins, especially the smaller ones like FTX and Celo have all rebounded.

Historically, small altcoins tend to do much better when Bitcoin rises. This explains why FTT has jumped sharply in the past few days.

Second, FTX Token price has risen as hopes of a reboot of the company improved. Last week, FTX announced that it had found an additional $5 billion in liquid cash that it could use to pay its clients. The firm also has millions of dollars held by authorities in the Bahamas. Also, the firm could sell some of its key assets like FTX Japan, Ledger X, and FTX Europe. 

Therefore, there is a likelihood that the company will be rebooted in the coming months. If this happens, we could see FTT token price continue rising. 

Another reason for the rally is the recent American inflation data. Data published last week showed that the country’s consumer price index (CPI) dropped for the sixth straight month in December. There is a sign that inflation will continue falling this year. 

FTX Token price forecast

Turning to the four-hour chart, the FTT token price has been in a strong bullish trend in the past few days. It has surged by more than 200% from the lowest point in November. Along the way, the token has jumped above all moving averages while the Relative Strength Index (RSI) and Stochastic moved above the overbought leve.

Therefore, I believe that FTX Token price will retreat in the coming days. If this happens, the next key support level to watch will be at $2.0.