Cryptocurrency market grapples with increased selling pressure following FTX situation
The cryptocurrency market returns to red after the selloff prompted by Binance’s desire to sell its FTT holdings. The announcement caused a wave of withdrawals on FTX and general outflows from the digital asset industry. However, investors should not panic.
Memetoken still has hope
Despite the most recent dive, Shiba Inu still has some rebound potential. Over the past 24 hours, the panic in the market has caused the SHIB token to fall to the October level of $0.00001056. Returning to this price level is an unfortunate event for a token that has reached the early stage of a potential reversal.
The return and drop below the 50-day moving average is unfortunately a negative sign for Shiba Inu, and it most likely means that the recovery rally is canceled and the token will continue to move in the price range of 0, 00000950 to $0.00001500.
However, the correction in the market does not bring only negativity. By returning to the lower boundary of the price range, Shiba Inu investors will once again be able to accumulate the token ahead of a significant rally.
Solana is in a catastrophic state
While the majority of assets on the cryptocurrency market are going through a tough time, Solana is likely to be the biggest loser today, as the coin lost over 15% of its value over a period of time, becoming the worst performing cryptocurrency of the day.
The drop to $24 brings it back to the price level we saw in 2021, putting a one-year return for Solana investors at nearly 0% despite the massive rally that lasted until November 2021, when SOl traded at $261 with a profit of 500% for around 100 days.
Technical issues, lack of funding and questionable usefulness of Solana compared to Ethereum are the three main reasons why the coin has suffered so much in the market, after the euphoria and endless investment in the industries faded. DeFi and NFTs.
The short-term bounce we’ve seen recently hasn’t turned into anything that would push Solana to new highs, which is why the price action we’re seeing today is just a a logical continuation of the extended downtrend Solana started in 2021, rather than a reaction to more recent events.
Unfortunately, not only small cryptocurrencies have become the target of the most recent market drop. The second-largest cryptocurrency has lost more than 8% of its value in the past 24 hours, returning to a price level that most market participants did not expect to see.
The reason for the fall and suppression of the movement in the market is the huge selling pressure exerted by FTX, which is actively selling its holdings to maintain the solvency of the exchange. According to reports, more than 300,000 ETH have recently been transferred from FTX wallets.
At press time, Ethereum is trading at $1,481, right at the local support level of the 50-day moving average.