The FTX Token has performed well this year, significantly outperforming other cryptocurrencies as attention shifts to the impending fund distributions
FTX Token (FTT) was trading at $3.50 on Monday, marking a rise of over 245% from its September lows, and pushing its market cap to over $1.1 billion
These gains could persist into January as FTX’s bankruptcy case reaches its final stages. The upcoming phase will involve the distribution of over $16 billion in funds to creditors and customers.
In mid-December, the FTX Estate announced that a U.S. court had approved a Chapter 11 Reorganization plan set to take effect on January 3. Creditors can begin making claims on that date, with the initial distributions expected 60 days later.
FTX Estate has selected BitGo, a leading crypto custodian, and Kraken as key intermediaries for the process. Additional partners may be added to manage the large-scale distribution. The growing anticipation surrounding these events has contributed to the recent FTT rally.
FTX, once one of the world’s largest centralized cryptocurrency exchanges with a $30 billion valuation, collapsed in 2022 following revelations of fund commingling.
Since then, Sam Bankman-Fried has been sentenced to 25 years in prison. Ryan Salame, a senior executive at the company, was sentenced to 7.5 years, but our reporting suggests that it could be reduced by over one year. Caroline Elision was sentenced to 2 years for collaborating with prosecutors.
FTX Token price analysis
The daily chart shows FTT has been in a strong bullish trend since bottoming at $1.013 in July. It has climbed to the 50% Fibonacci Retracement level.
FTT remains above its 50-day and 200-day moving averages, which formed a golden cross pattern on October 7—a bullish signal in technical analysis.
However, there are indications of a double-top pattern forming at $4.31, with a neckline at $2.50. A double-top is a common reversal pattern, suggesting a potential price pullback as market participants price in the distributions.
On the other hand, a breakout above the $4.31 resistance could trigger further gains, potentially pushing FTT to its 2023 high of $5.95—approximately 75% above its current level. A drop below the $3 support would invalidate the bullish outlook.
