Bankrupt crypto companies FTX and Terra's tokens continue to tumble ahead of a bullish 2024

FXStreet
Updated
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Source: DepositPhotos

●FTX and Terra stand as two of the biggest failures in the history of crypto despite their attempts at redemption.


●FTT price over the past two weeks has seen a decline of 38%, while the rest of the altcoins have charted growth.


●Luna Classic price witnessed a drawdown of 42% this month, exhibiting a loss of confidence in these assets ahead of 2024.



The crypto space had a bullish year, considering the total market capitalization grew by 117% year to date. During this time, many cryptocurrencies had a stellar run, such as Solana, Render, Avalanche even Bitcoin. However, with the year coming to an end, a rather specific category of tokens seems to be falling into the bear's claws before 2024 begins.


Luna Classic price made no move in 2023


Luna Classic price might have witnessed volatility over the past year, noting ups and downs and periods of rallies and corrections, but today, the value of the asset is virtually unchanged in regards to what it was worth at the beginning of 2023.


In the last 12 months, LUNC has risen by no more than 1.3%, trading at $0.0001465 at the time of writing. The bankrupt company's token could have charted a 75% growth, but the correction witnessed since the beginning of December wiped out this possibility as well.


The altcoin declined by 42% in the last three weeks, briefly attempting to test the $0.0001780 line as support but failing to do so nonetheless.


LUNC/USDT 1-day chart

LUNC/USDT 1-day chart, Source: TradingView.


The chances of witnessing growth in 2024, despite the broader market bullish cues, are weak as investors would likely want to move their money into assets that have actual potential for growth.


FTT price disappointed a little less


The native token of the controversial bankrupt crypto exchange FTX managed to chart a 312% increase since the beginning of 2023. But this does not take away from the fact that the altcoin will witness considerable outflows in 2024.


The potential spot Bitcoin ETF approval will be driving investors and institutions to BTC and other top assets primarily. Fundamentally sound assets such as layer 2 and DeFi tokens will be the secondary choice. Lastly, meme coins and trending tokens have a much better shot at noting gains than FTT, owing to the latter's lack of purpose.


With the founder of FTX, Sam Bankman-Fried, being found guilty, the "trend" aspect of the asset is lost, which is evinced in the 38% drawdown observed in the last two weeks. Fundamentally, the token holds no value anyway.


FTT/USD 1-day chart

FTT/USD 1-day chart, Source: TradingView.


Price indicators, Relative Strength Index (RSI), and Moving Average Convergence Divergence (MACD) are also exhibiting bearishness, backing up the likeliness of a decline heading into 2024.



* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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