Biggest Movers: FTT Fire Sale Sends Token Over 70% Lower, SOL Also Falls Significantly
FTX Token plunged by over 70% in today’s session, as sentiment surrounding Binance’s potential buyout of FTX continued to raise market eyebrows. Following speculation that FTX could be insolvent, Binance’s Changpeng “CZ” Zhao moved to acquire the firm, pending due diligence. Solana is also significantly lower, due to FTX’s sister company Alameda currently holding large amounts of SOL. FTX Token (FTT)
FTX Token (FTT) continued to sink on Wednesday, as the token lost over 70% of its value in today’s session.
Following yesterday’s high of $19.51, FTT/USD plunged to an intraday low of $3.15 earlier in the day.
The move came as markets continued to digest Binance’s decision to agree to an acquisition of the firm, pending due diligence (DD). FTT/USD – Daily Chart
Many believe that the DD could show the true significance of FTX’s balance sheet, which some expect could intensify the current sell-off.
As of writing, the 14-day relative strength index (RSI) is at 11.98, which is its weakest point on record, eclipsing yesterday’s record reading of 23.79.
Despite prices already in the depths of bearish territory, there could be more still to come, should 1) an acquisition not be completed, or 2) damning news be revealed about FTX. Solana (SOL)
In addition to FTT, solana (SOL) was another notable loser on Wednesday, as the once top 10 cryptocurrency fell by nearly 40%.
SOL/USD dropped to a low of $16.47 on Wednesday, less than 24 hours after residing at a peak of $31.06.
This decline in solana comes as traders believe that FTX’s sister company Alameda could move to sell its holdings of SOL, to obtain liquidity. SOL/USD – Daily Chart
Looking at the chart, SOL is now down for a fourth straight day, with its RSI currently tracking at 26.95, close to a floor of 27.00.
In addition to this, the 10-day (red) moving average looks set for a downwards cross against its 25-day (blue) counterpart, which could trigger even more declines.
As of writing, SOL has marginally rebounded, as is currently trading at $18.70.
Register your email here to get weekly price analysis updates sent to your inbox: Tags in this story Analysis, Binance, Cryptocurrency, FTT, FTX Token, SOL, Solana
Do you expect solana to fall below $10.00 this week? Let us know your thoughts in the comments. Eliman Dambell
Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX. Bitcoin, Ethereum Technical Analysis: BTC at 2-Year Low, ETH Down 20% as FTX Turmoil Leads to Crypto Bloodbath MARKET UPDATES | 10 hours ago Biggest Movers: FTT Down 30% on Tuesday, Falling to 21-Month Low MARKET UPDATES | 1 day ago
Image Credits: Shutterstock, Pixabay, Wiki Commons, Maurice NORBERT / Shutterstock.com Previous articleElephant in the Room: FTX Troubles Force Exchange Executives to Talk About Proof-of-Reserves Next articleMeta Announces Layoffs Affecting 13% of Workforce; More Than 11,000 Employees to Be Fired Amidst ‘Cultural Shift’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike