- The Voyager Digital token price rallied by 71% in 24 hours.
- This price action means that FTX token will experience such parabolic moves.
The FTX Token price has dropped like a rock in the past few days. FTT price was trading at $1.4655 on Thursday, which was the lowest level since 2020. It has plunged by more than 90% this year and by over 98% from its all-time high.
VGX price action
FTX and Voyager Digital were companies in the same industry. They were leading crypto exchanges that used to handle billions of dollars on a daily basis. The two companies have made headlines this year when they filed for voluntary bankruptcy.
Like other popular crypto exchanges, FTX and Voyager Digital launched their digital tokens to incentivise their customers. FTX had its FTT while Voyager Digital had its VGX token.
Historically, there has been a disconnect between the fundamentals of crypto exchanges and that of their tokens. For example, while Voyager Digital has been in bankruptcy proceedings, the VGX token has jumped by more than 225% from its lowest level this year. VGX price has jumped by more than 60% in the past 24 hours.
The same is true with Celsius. The Celsius Network Token (CEL) price has jumped by more than 350% from its lowest point this year even after the company filed for bankruptcy. Terra Luna Classic price has also done well.
Read more about the safest crypto wallets.
Short squeezes are common
Therefore, while FTX has gone bankrupt, there is a likelihood that the FTT token will not go to zero. There are several reasons for this. First, there is a likelihood that FTX will be acquired during the bankruptcy process. For example, FTX had committed to buy Voyager Digital and BlockFi out of bankruptcy.
Second, short-squeezes have become popular in cryptocurrencies and stock market. For example, Hertz stock price went parabolic in 2020 after the car rental company filed for bankruptcy. This year, Revlon shares surged briefly after the firm went bankrupt.
These short squeezes are popular because these assets tend to be thinly traded. As such, it is possible for a small group of traders to manipulate supply and demand.
VGX price prediction
The four-hour chart shows that the VGX price has done well in the past few hours. It has managed to cross the 50-day moving average while the Awesome Oscillator has moved above the neutral point. The Relative Strength Index (RSI) has moved above the neutral point at 50.
Therefore, there is a likelihood the Voyager Digital token will keep rising as bulls target the key resistance level at $0.06.
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