FTT, the native token of the now-defunct exchange FTX, has been experiencing a significant decline in the past week, with a 12.39% drop in its value. The bearish wave has intensified, leading to concerns about a potential fall below $1. Despite a brief relief in the past 24 hours, with a 1.60% increase to $1.89, market analysts predict that this may just be a lower high before a massive price decline takes place. The formation of a death cross pattern on the daily chart, with the MACD line crossing below the signal line, indicates a looming sell wave that could further drive down the price of FTT.
Market indicators such as the MACD and Accumulation/Distribution (A/D) ratio suggest that the bearish stance on FTT is likely to persist. The A/D ratio currently shows significant distribution by market participants, with a volume of $55.51 million, the lowest since the beginning of the year. If this distribution intensifies, it could lead to a further decline in the price of FTT. Additionally, the asset is trading at a critical point on the chart, with a head and shoulders pattern indicating a potential 56.59% plunge to $0.811 if the neckline support level is breached.
The lack of a meaningful price rebound for FTT amidst positive market sentiment triggered by the FTX exchange payouts to creditors is a cause for concern. The exchange is set to distribute $1.2 billion, including a 9% accrued gain on assets since November 2022, with a total of $16 billion allocated to creditors who have filed claims. While such developments typically lead to a price rebound, FTT has not experienced a significant uptick, raising uncertainty over market sentiment and the future trajectory of the token.
In conclusion, FTT’s current market trend is bearish, with key indicators pointing towards a potential further decline in its price. The formation of a death cross pattern and significant distribution by market participants suggest that a sell wave could be imminent, leading to a prolonged downturn for the asset. The failure of FTT to rebound despite positive market sentiment triggered by the FTX exchange payouts adds to the uncertainty surrounding its future performance. Investors and traders should closely monitor key indicators and market developments to make informed decisions regarding FTT and its potential price movements in the coming days and weeks.
