- The distribution of FTT continues in the market as a death pattern on death.
- On the graph, a main and shoulder formation predicts that a fall below $ 1 could be on the horizon.
In the past week, FTT has seen a large decrease of 12.39% as the Bearish Golf increased. In the last 24 hours, however, the actual relief saw, with 1.60% to $ 1.89.
A further view of the market structure shows that this short recovery could probably be a lower high before an intensified market waste takes place, which leads to a huge fall in price.
Death Cross forms as distribution increases
On the daily graph, FTT has formed a death crawl – a occurrence when the blue MacD line crosses under the orange signal line.
At the time of writing, the MACD had a lecture of -0.0720, while the orange signal line was at -0.0688, with price trade in the negative zone.
When a death cross forms on the market, this suggests that a huge wave of sales is incoming, which tends to be a price decrease. MACD stands for moving average convergence diversion.
Source: TradingView
This bearish attitude will probably continue to exist, because there has been a remarkable FTT distribution by market participants. Distribution is a phase in which traders reduce their exposure to an actively selling.
The ratio between accumulation/distribution (A/d) showed the distribution volume of $ 55.51 million on a period, the lowest level since the year began. If this is intensive, the price of the asset could fall further.
Ftt’s path on the graph
From this letter, FTT acted on a critical point on the graph because it had formed an important bearish pattern that is known as a head and shoulder pattern.
This includes price trending higher while the Hertet of a support level that is known as a neckline.
As can be seen on the graph below, FTT acted at the neckline, and it will probably break down this level. If this were to happen, it could actively fall 56.59% to $ 0.811, which reflects the current market sentiment.
Source: TradingView
However, the tendency of the price to move lower depends on indicators – MacD and A/D – that retain their bearish phase.
FTT Tart Positive Market sentiment
This development in the movement of FTT comes at a time when the exchange FTX, which has now been degraded, served as its native token, pays to creditors.
The stock market will distribute $ 1.2 billion, including a accrued profit of 9% on assets since November 2022. A total of $ 16 billion will be allocated to creditors who have filed claims, according to reports.
Historically, such developments cause a price rebound, but FTT still has to see a meaningful increase, leaving uncertainty about market sentiment.