• The circulation of FTT persists in the market as the emergence of a death cross pattern is noted.
• A head and shoulders formation on the chart indicates that a descent below $1 may be imminent.

Over the past week, FTT experienced a significant drop of 12.39% as bearish trends intensified. Nevertheless, in the last 24 hours, the asset managed to recover slightly, rising by 1.60% to reach $1.89.

Upon examining the market structure, it appears that this momentary recovery could potentially serve as a lower high, setting the stage for a more severe market downturn, which could lead to substantial price depreciation.

Death Cross Emerges Amid Increased Distribution

On the daily trading chart, FTT has formed a death cross pattern, which occurs when the blue MACD line crosses beneath the orange signal line.

At the time of this analysis, the MACD reading was -0.0720, while the signal line was at -0.0688, indicating that prices are trading in a negative territory.

The formation of a death cross typically signals an impending wave of selling in the market, which often results in decreased asset prices. MACD stands for Moving Average Convergence Divergence.

Source: TradingView

This bearish outlook is likely to endure as significant distribution of FTT continues among market participants. Distribution refers to a phase where traders alleviate their exposure to an asset by selling.

The Accumulation/Distribution (A/D) ratio indicated a distribution volume of $55.51 million at the time of writing, marking the lowest level since the start of the year. If this trend accelerates, further declines in the asset’s price could occur.

Analyzing FTT’s Price Trajectory

As of this analysis, FTT is navigating a pivotal point on the chart, having created a significant bearish pattern known as a head and shoulders formation.

This pattern involves a price uptrend that retests a support level referred to as the neckline.

As illustrated in the chart below, FTT is currently positioned at the neckline, with a probable breakdown from this point. If this scenario unfolds, the asset could experience a decline of 56.59% to $0.811, in line with the prevailing market sentiment.

Source: TradingView

The likelihood of the price declining further hinges on whether indicators—MACD and A/D—sustain their bearish momentum.

FTT Remains Static Amid Positive Market Trends

This evolving situation for FTT occurs concurrently with the now-defunct exchange FTX, for which the asset acted as the native token, embarking on its payouts to creditors.

The exchange is aiming to distribute $1.2 billion, incorporating a 9% gain accrued on assets since November 2022. A total of $16 billion is projected to be allocated to creditors who have made claims, as per recent reports.

Historically, such news often results in a price rebound, yet FTT has not demonstrated a significant uptick, leading to lingering uncertainties in market sentiment.