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.

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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

FTT price chart | Source: crypto.news

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.

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