The FTX Token (FTT) has seen an impressive surge this year, significantly outperforming other cryptocurrencies as the market prepares for the forthcoming distribution of funds. On Monday, FTT was trading at $3.50, reflecting a remarkable increase of over 245% since hitting its lowest point in September and elevating its market capitalization to above $1.1 billion.
This upward trend might persist into January as FTX’s bankruptcy proceedings near their conclusion. In the upcoming phase, over $16 billion will be distributed to creditors and customers. In December, the FTX Estate announced that an American court approved its Chapter 11 Reorganization plan, set to be operational from January 3. Consequently, creditors can start making claims on that date, with initial distributions forecasted to roll out 60 days later.
Engaging renowned crypto entities BitGo and Kraken as crucial intermediaries, the FTX Estate has actualized a plan to manage this vast payout efficiently. The resultant anticipation has ignited a notable rally in FTT.
FTX, once a powerhouse in the centralized cryptocurrency exchange domain valued at around $30 billion, succumbed to a catastrophic collapse in 2022 due to mishandling of funds. Following these events, Sam Bankman-Fried is now serving a 25-year prison sentence. Meanwhile, Ryan Salame received a 7.5-year sentence, which, according to reports, might be reduced. Caroline Elison also faced a two-year sentence for cooperating with prosecutors.
In terms of technical analysis, FTT has been on a steep upward trajectory since hitting a low of $1.013 in July. Its price movement has touched the 50% Fibonacci Retracement level, maintaining its position above both the 50-day and 200-day moving averages—a positive signal known as the golden cross. However, a possible double-top formation is emerging, indicating potential market resistance and a subsequent price pullback. If FTT breaks past the $4.31 resistance level, the price may rally toward its 2023 high of $5.95, a 75% increase from current levels. Conversely, a dip below the $3 support could undermine the bullish trend.
