FTX Token (FTT) Rallies 245% as Attention Shifts to Impending Fund Distributions

The FTX Token has performed well this year, significantly outperforming other cryptocurrencies as attention shifts to the impending fund distributions

FTX Token (FTT) price has performed exceptionally well this year, rallying over 245% and significantly outperforming other major cryptocurrencies amid anticipation for the upcoming fund distributions from the bankrupt crypto exchange.

FTT was trading at $3.50 on Monday, up from lows around $1.01 in September and pushing its market cap to over $1.1 billion. These gains are likely to continue into January as FTX's bankruptcy case reaches its final stages.

The next phase will see over $16 billion in funds being distributed 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 will be able to 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.

However, the large-scale nature of the distribution may prompt the addition of further partners to aid in the smooth execution.

FTX, once a crypto behemoth with a $30 billion valuation, collapsed in 2022 after revelations of fund commingling. The developments led to the arrest and extradition of Sam Bankman-Fried.

In March, Bankman-Fried was sentenced to 25 years in prison for defrauding FTX customers, while Ryan Salame, a senior executive at the company, received a 7.5-year sentence, which our reporting suggests could be reduced by over one year. Caroline Ellison, another key figure in the FTX saga, received a 2-year sentence for collaborating with prosecutors.

FTT technical analysis: bullish trend, double-top pattern emerging

On the daily chart, FTT has been in a strong bullish trend since bottoming at $1.013 in July. It has climbed to the 50% Fibonacci Retracement level.

The token 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 point, 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.