Bankrupt exchange FTX is seeking court approval to liquidate $3.4 billion worth of digital assets. Let’s figure out how this will affect cryptocurrency rates.
The notoriously bankrupt crypto exchange FTX is once again in the spotlight of market participants. As early as September 13, it may receive court permission to liquidate assets worth about $3.4 billion. Many members of the crypto community fear that this could become a catalyst for a large-scale market crash.
However, court documents according to FTX indicate that the exchange is likely to withdraw no more than $100 million in digital assets weekly. This can make a potential bearish effect smoother and protect the market from a sharp drop in asset prices.
As of January 17, FTX’s assets in Solana (SOL) were $685 million, in Aptos (APT) – $67 million, and in Dogecoin (DOGE) – $42 million. We decided to look at the price dynamics of all three coins.
Solana may break 256-day support
The daily chart shows that the Solana project token has been growing along an ascending support line since the beginning of the year. On July 14, SOL reached a new yearly high of $32.13.
However, since then the price has been moving down. After forming a declining high (red icon), SOL accelerated its decline and hit a low of $17.36 on September 11th.
This low tested the ascending support line (green icon) for the first time since June 15. To date, this lineage was 256 days old. Its bearish breakdown or price rebound from it can determine the further trend.
Source: TradingView
The daily RSI is bearish and promises price a bearish breakout. In the event of such a breakdown, SOL could fall by 20% to the nearest support at $14. On the other hand, a vigorous bounce could result in a 50% rally that would take the price towards the $27 resistance area.
Read also: How much should you invest in Solana (SOL) to become a millionaire in the next bull market
Dogecoin (DOGE) returns to support after rebound
The Dogecoin project token is one of the most recognizable “calling cards” of the crypto market and has many fans. It appeared in 2013 as a meme coin, but many already believe that DOGE has outgrown this status.
Since June 10, the price of DOGE has been rising along an ascending support line. However, on August 15, the price made a bearish breakout of this line, indicating the end of the previous bullish move. This breakout led to the August 17 low at $0.055.
Price then rebounded, drawing a very long lower wick (green icon) on the chart and recovering above the $0.060 horizontal support area.
Despite the rebound, DOGE was stopped at the 0.382 Fibonacci retracement level at $0.066 (red circle). The price fell again to the horizontal support area at $0.060.
Similar to the SOL chart, the daily RSI is bearish. The indicator is below the 50 level and declining, indicating a bearish trend.
Source: TradingView
In the event of a bearish breakout, DOGE could fall 12% to the yearly low of $0.053. On the other hand, if growth gains momentum, the meme coin could rise to the 0.5 Fib resistance level at $0.070.
Read also: Dogecoin miners increased reserves by $56 million: what does this mean for the price of DOGE
Aptos (APT) approaches yearly low
The price of APT, the token of the Aptos project, reached an all-time high of $20.40 on January 24. The decline initially stopped on June 10 at a low of $5.40. The subsequent bounce (green icon) saw the price recover above the $5.80 horizontal area and confirm it as support.
However, the price was unable to hold this support area and fell below it in September. As with SOL and DOGE, the daily RSI is bearish and shows no signs of an impending bullish trend reversal.
Source: TradingView
If the decline continues, Aptos could fall another 35% to reach a yearly low of $3.30. On the other hand, if a bullish reversal occurs, APT could rise 20% and test the $5.80 area, which is expected to provide resistance.
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2023-09-11 16:41:00
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