FTT's Death Cross: Bearish Storm Looms

FTT, the native token of the now-defunct cryptocurrency exchange FTX, has been under intense scrutiny as bearish signals continue to rise. In the past week, FTT has experienced a significant decline of 12.39%, with a brief recovery of 1.60% in the past 24 hours. However, market analysts suggest that this recovery could be a lower high, indicating a potential intensified market fall and a massive price decline.

On the daily chart, FTT has formed a death cross pattern, which occurs 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. This pattern suggests a massive sell wave is incoming, which tends to lead to a price decline. MACD stands for Moving Average Convergence Divergence.

The 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 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, 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. However, the tendency for the price to move lower depends on indicators—MACD and A/D—continuing to maintain their bearish phase.

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, $1