FTT, the native token of the now-defunct exchange FTX, has been under heavy selling pressure recently, with a notable 12.39% drop over the past week. While the asset saw a brief 1.60% recovery in the last 24 hours, the overall market structure suggests a further decline might be on the horizon. As bearish signals rise, some analysts are predicting that FTT could potentially fall to as low as $0.8 in the coming weeks.

Death Cross Signals Growing Bearish Sentiment

On the daily chart, FTT has formed a death cross pattern, a bearish signal typically indicating an impending sell-off. A death cross occurs when the MACD (Moving Average Convergence Divergence) line, which measures momentum, crosses below the signal line. At the time of writing, the MACD was reading -0.0720, while the signal line stood at -0.0688, with both trading in negative territory. This suggests that selling pressure could intensify, potentially pushing FTT’s price lower.

The formation of the death cross is a particularly concerning development as it suggests the market sentiment is heavily tilted towards the bears. When this pattern emerges, it typically signals a larger downward movement, further solidifying concerns that FTT’s price could continue to fall.

Distribution Phase and Low Volume Raise Red Flags

Alongside the death cross, the distribution phase of FTT is becoming more apparent. Distribution occurs when market participants begin selling off their positions, reducing exposure to the asset. The Accumulation/Distribution (A/D) ratio, a key indicator of buying or selling pressure, currently shows a distribution volume of $55.51 million, the lowest level seen in 2025 so far. This reduction in buying activity further highlights that FTT might struggle to maintain any upward momentum, and a more substantial price drop is on the cards.

As long as the distribution continues at this pace, and the MACD remains in a negative position, it is likely that the selling pressure will continue to outweigh any potential bullish moves in the market.

Head and Shoulders Pattern Suggests Potential Drop to $0.8

Another bearish formation on the chart is the head and shoulders pattern, a classic signal of a trend reversal. In this pattern, the price moves higher, forming a peak (the head), followed by two smaller peaks (the shoulders), with a neckline providing support. FTT is currently trading at the neckline, and a breakdown below this level could trigger a massive price decline.

If the asset fails to hold at the neckline and breaks below, technical analysis suggests a potential plunge of around 56.59%, which could see FTT drop as low as $0.811. This projection aligns with the overall negative market sentiment surrounding FTT, making the possibility of such a drop seem increasingly likely.

External Factors and Uncertainty in the Market

Despite some positive news surrounding FTX, the exchange where FTT originally gained its value, the token has yet to show any significant response to recent developments. FTX is in the process of distributing $1.2 billion to creditors, including a 9% gain on assets since November 2022. Historically, such events have led to rebounds in the price of the affected tokens. However, FTT has failed to react positively, raising questions about market sentiment and investor confidence.

This lack of a meaningful uptick in response to the FTX payouts only adds to the uncertainty around FTT’s future price performance. Given the current bearish technical indicators and market conditions, the token faces a challenging road ahead.

What’s Next for FTT: Be Cautious

With FTT showing clear bearish signals, including a death cross, distribution phase, and a head and shoulders pattern, traders and investors should approach the asset with caution. While brief recoveries and price fluctuations are possible, the overall trend appears to be pointing towards a significant decline.

If the current trend continues, FTT could well dip to the $0.8 mark, as predicted by technical analysis. Traders should be aware of these signs and consider protecting their positions as the market continues to favor the bears. For now, the outlook for FTT remains bleak, and further downside seems increasingly likely.