- FTX Token price has surged hard recently, giving it a market cap of over $1.5 billion.
- The token surged as the ongoing Binance woes in the United States.
The FTX Token (FTT) price has done well this year, making it one of the best-performing tokens. FTT soared to a high of $4.85 on Thursday, about 390% from the lowest level this year. This surge has seen its total market cap jump to over $1.5 billion.
Why FTT price is surging
FTX Token has done well as investors hope for the ultimate reboot of FTX as the bankruptcy process continues. Three companies have made a bid for FTX, which they believe is still a good brand.
One of the potential buyers is Tom Farley, the former president of the New York Stock Exchange (NYSE). Farley now runs Bullish, a crypto exchange that was launched by the creators of EOS.
Bullish made headlines this week when it acquired CoinDesk, the award-winning crypto news publisher for an undisclosed amount. Other companies that have placed a bid are Figure Technologies and Proof Group.
It is not clear when FTX will be launched. And most importantly, it is still unclear whether the potential acquirer will also move forward with the FTX Token. Even in its prime, FTT had no major utility in FTX other than giving discounts to traders.
Therefore, there are three other reasons why FTX Token price has surged. First, the rally is in line with the performance of other FTX-exposed tokens. For example, Solana price has surged by over 500% from its lowest point this year, giving it a market cap of over $16 billion.
Second, FTT price surged as investors reflected on Binance, which has come under pressure this week. Binance was forced to pay over $4 billion to the US government. Changpeng Zhao resigned as the CEO of the company and he now faces time in prison. Using precedence, he will likely serve a few months or even a suspended sentence.
Further, FTX price has jumped because of FOMO. I believe that FTT has now become a meme coin since it has no utility. As we see with other meme coins, a rally tends to attract more traders to a coin.
FTX Token price forecast
Turning to the daily chart, we see that the FTT crypto price is doing well. The recent surge happened after it went through a period of consolidation. In the Wyckoff Method, this process is also known as accumulation. It then bounced back and moved to a markup process where demand is higher than supply.
FTT price is now entering the distribution phase and is also forming a double-top pattern. Therefore, while the FTX Token price has some more upside, there is a likelihood that it will soon have a bearish breakout. This view will become invalid if it moves above the double-top price of $5.530.
