The bankrupt crypto exchange FTX is under scrutiny again, as it may receive court approval as early as September 13 to liquidate approximately $3.4 billion in assets. This development has raised concerns in the crypto community about the potential for a massive market crash.
However, FTX’s court documents suggest that the exchange plans to withdraw no more than $100 million in digital assets on a weekly basis. This approach could mitigate the bearish impact on the market and prevent a sharp drop in asset prices.
As of January 17, FTX held $685 million in Solana (SOL), $67 million in Aptos (APT), and $42 million in Dogecoin (DOGE) assets. Let’s take a closer look at the price dynamics of these three coins:
Solana (SOL):
- SOL has been following an ascending support line since the beginning of the year.
- It reached a yearly high of $32.13 on July 14 but has since experienced a downward trend.
- The price recently tested the 256-day-old ascending support line, which could determine its further trend.
- Daily RSI is bearish, suggesting a potential breakdown leading to a 20% drop to $14 or a 50% rise to the $27 resistance area.
FTX’s $3.4 Billion Asset Liquidation: Impact on Solana (SOL) and Dogecoin (DOGE)
Dogecoin (DOGE):
- DOGE has been rising along an ascending support line since June 10.
- However, on August 15, it experienced a bearish breakdown of this line, signaling the end of the previous bullish move.
- DOGE’s price rebounded and recovered above the $0.060 horizontal support area.
- Despite the rebound, DOGE encountered resistance at the 0.382 Fibonacci retracement level at $0.066 and fell back to the $0.060 horizontal support area.
- Similar to SOL, the daily RSI for DOGE is bearish.
These developments indicate potential price fluctuations in SOL and DOGE, with both facing bearish signals. Traders and investors should closely monitor these assets and consider the implications of FTX’s asset liquidation on the broader crypto market.