FTT price skyrockets 150% in 48 hours but still makes no dent in recovering FTX bankruptcy losses

FTT price is witnessing the best two days of the year at the moment, as the bankrupt exchange’s native token is skyrocketing. Even then, the noted rise is nothing more than a blip in the losses experienced by FTX over the past year.

FTT price rally is still a disappointment

FTT price, on paper, has just registered the best single-day performance noted by any of the cryptocurrencies in the top 50 list since the beginning of the year. The altcoin rallied by almost 60% in the past day and more than 154% in the last 48 hours. During the intra-day trading high, the FTX native token even touched a high of $3.68, marking a 171% rally.

Trading at $3.44 at the time of writing, the altcoin is at its highest point since the cryptocurrency exchange FTX went bankrupt around this time last year. However, despite the massive increase, the rally is still the equivalent of adding a drop of water into an empty pool.

Looking at the losses witnessed since the bankruptcy alone, this 158% rally has made no significant dent. Comparing that against the all-time high of FTT of $79, the altcoin would need to register a 2,359% gain to retest it. Thus, those expecting a further rally should stay wary as the rise is not due to a fundamental shift but simply owing to a short-term bullish narrative.

FTT/USD 1-day chart

As reported by FXStreet earlier this week, Securities & Exchange Commission (SEC) Chair Gary Gensler shared his opinion on the potential of the FTX exchange being revived. Gensler noted that any entity looking to do so must do it within the law.

This was the first positive and borderline official acknowledgment regarding the revival that led to the rally. If this bullishness continues over the next two weeks, FTT price might be able to breach $4.00 or even the resistance level at $4.55.

FTT/USD 1-day chart

However, given that the rally is fueled by simple FOMO, it may not be surprising if FTT holders choose to capitalize on this rise and sell their holdings for profit. Consequently, the price would likely correct and fall to $2.42. Losing this support level would invalidate the bullish thesis and pull the altcoin back down below $2.00.