- The distribution of FTT continues in the market as a death cross pattern surfaces.
- On the chart, a head and shoulders formation predicts a fall below $1 could be on the horizon.
In the past week, FTT has seen a major decline of 12.39% as the bearish wave intensified. However, in the past 24 hours, the asset saw brief relief, climbing 1.60% to $1.89.
A closer look into market structure shows this brief recovery could likely be a lower high before an intensified market fall takes place, leading to a massive price decline.
Death cross forms as distribution heightens
On the daily chart, FTT has formed a death cross pattern—an occurrence when the blue MACD line crosses below the orange signal line.
At the time of writing, the MACD had a reading of -0.0720, while the orange signal line was at -0.0688, with price trading in the negative zone.
When a death cross forms in the market, it suggests a massive sell wave is incoming, which tends to lead to a price decline. MACD stands for Moving Average Convergence Divergence.
Source: TradingView
This bearish stance is likely to persist as there has been notable FTT distribution by market participants. Distribution is a phase where traders reduce their exposure to an asset by selling.
The Accumulation/Distribution (A/D) ratio showed the distribution volume at $55.51 million at press time, the lowest level since the year began. Should this intensify, the asset’s price could drop further.
FTT’s path on the chart
FTT was trading at a critical point on the chart as of this writing, as it had formed a major bearish pattern known as a head and shoulders pattern.
This involves price trending higher while retesting a support level known as a neckline.
As seen on the chart below, FTT was trading at the neckline, and it’s likely to break down from this level. Should this occur, the asset could plunge 56.59% to $0.811, reflecting the current market sentiment.
Source: TradingView
However, the tendency for the price to move lower depends on indicators—MACD and A/D—continuing to maintain their bearish phase.
FTT defies positive market sentiment
This development in FTT’s movement comes at a time when the now-defunct exchange FTX, in which the asset served as its native token, begins payouts to creditors.
The exchange is set to distribute $1.2 billion, including a 9% accrued gain on assets since November 2022. In total, $16 billion will be allocated to creditors who have filed claims, according to reports.
Historically, such developments trigger a price rebound, but FTT has yet to see a meaningful uptick, leaving uncertainty over market sentiment.
